Airports' Ipo Is A Smash Hit With Investors

[george]

PRIVATISATION: Airports' IPO is a smash hit with investors

BANGKOK: Airports of Thailand Plc's initial public offer shares were sold out within hours as hundreds of investors lined up at banks to snap up the first IPO from a state enterprise to hit the market since 2002.

Under its partial privatisation plan, AOT aimed to sell 358.8 million new shares to local and foreign investors, and reserve an additional 53.8 million shares for a "greenshoe" option in case of over-subscription.

Although Bangkok Bank's computer system crashed at 8am, the beginning of the subscription period, the bank recovered to chalk up the highest number of AOT shares booked - 200 million.

Kasikornbank sold 122 million shares, Krung Thai Bank sold 89.4 million and Thai Military Bank sold 70 million.

Bangkok Bank's executive vice president Ruchanee Nopmuang said it took until 9.30am to fix the computer problems, but the bank then made up for lost time.

"Our bank had the highest number of subscribed shares as we allowed all counters to run the process," she explained.

Krung Thai Bank said around 800 people lined up early at its headquarters to subscribe to the AOT shares and the subscription was closed at around 10am.

AOT, which operates six airports in the Kingdom, is expected to raise up to Bt18 billion from the offering, based on its initial share price range of Bt37 to Bt42 each. As the final price will be set on March 2, subscribers must front up Bt42 a share while they wait. The subscription period had originally been set for yesterday until March 1.

Fund managers and analysts said they expected the price to be pegged at the high end of the range, as funds had heavily bid for the shares during a roadshow earlier this month.

The subscribed shares via all four banks will be selected on a random basis later.

"Given the strong demand, it's likely that the greenshoe option will be exercised," said an investment banker at Phatra Securities, the lead underwriter of the IPO.

The total 428.6 million new shares account for around 30 per cent of AOT's equity after the IPO.

Analysts said investors could count on AOT's solid revenue stream from airport fees. Prospects for growth are also supported by the prospects for Suvarnabhumi International Airport, currently being built near Bangkok.

There has been a pent-up demand after a long hiatus of state-enterprise IPOs. AOT is the first state enterprise to be listed on the bourse since late 2002, when PTT Plc, the country's largest oil and gas conglomerate, offered shares to the public.

Proceeds from AOT's public offering will be used to fund construction of Suvarnabhumi airport, scheduled for completion in September 2005.

The company's shares will debut on the Stock Exchange of Thailand on March 11.

--The Nation 2004-02-27

[netkoala]

I heard that a bank was brought down in a country recently because the directors of the board invested in an Airport construction/something.

Not saying it is not bona fide, as it may be all over the your news, but makes you think twice.