Bangkok--15 Mar--SET
The Stock Exchange of Thailand (SET) will list Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, with a size of THB 18.41 billion (approx. USD 600 million) on its main board on March 19, making it Thailand’s largest-ever property fund initial public offering (IPO).
The property fund, managed by Krung Thai Asset Management pcl, will be listed under the ticker symbol “TLGF.”
TLGF has invested in 17 high-quality Tesco Lotus hypermarket-anchored shopping malls in prime locations across all regions of Thailand, including Bangkok and the vicinity, tourist destinations and burgeoning cities. In addition, the property fund has an established acquisition pipeline, with plans to inject additional assets into the fund every year.
Chanitr Charnchainarong, SET’s Executive Vice President, said: "TLGF is the second property fund listing on the Thai bourse this year and is the country’s biggest property fund IPO since SET launched property funds in 2003. At its IPO, TLGF sold 1,770 million investment units at THB 10.40 each, for a total worth of THB 18.41 billion between February 24 and March 12 offering to both domestic and foreign investors. The fund has already attracted 11,341 unitholders.”
Somchai Boonnamsiri, CEO of Krung Thai Asset Management pcl, said: "The Initial Public Offering of TLGF received overwhelming response from institutional and retail investors during the subscription period, due to the number and quality of the assets in the Fund and having Tesco Lotus as the Fund’s property manager, utilising its 17 years of experience as a leading retailer and shopping mall operator in Thailand. TLGF also has a clear growth plan, with a commitment to inject at least one to two assets into the fund every year. I believe TLGF will help significantly increase the market capitalization for the Thai Stock Exchange and offer an attractive investment option for investors.”
TLGF is a closed-end specific property fund with indefinite life. Its dividend policy is to payout no more than four times a year at a rate of no less than 90 percent of net profit, excluding unrealized gains from auditing of property reappraisals of leases during the related accounting period. The fund's top three shareholders after its IPO are Ek-Chai Distribution System (Tesco Lotus) (25 percent), Merrill Lynch Far East Limited (21.62 percent), and Government Pension Fund (8.15 percent).
For more information, please see TLGF's prospectus at the Securities and Exchange Commission's website at www.sec.or.th and general information on the SET's website at www.set.or.th.
For more information, please contact S-E-T Call Center 0 2229 2222
Members of the media should contact the Public Relations Unit, Corporate Communications Dept.: Ladawan Kantawong, tel: 0-2229-2036 / Arada Kultawanich, tel: 0-2229-2796