Bangkok--28 May--The Way Communication
Asia Aviation Limited, or AAV, major shareholder of Thai AirAsia sold its 1,212.5 million IPO shares between 23 and 25 May, 2012 with investors snapping up the stocks. The company’s executives have affirmed their long-term shareholding and have set their sights on making Thai AirAsia the leader in its market. Thanachart Securities Plc., CIMB and Credit Suisse, as the joint global coordinators and bookrunners of the IPO, have expressed exaltation over interest in AAV and affirm full readiness to introduce the stock to the Stock Exchange of Thailand on 31 May, 2012.
Mr. Tassapon Bijleveld, CEO of Asia Aviation Limited or AAV, major shareholder of Thai AirAsia, the leader in low-cost carrier, has made known that AAVs Initial Public Offering (IPO), selling 1,212.5 million shares at 3.7THB per share for a total value of 4,486.25 million THB, saw an overwhelming response from investors who rushed to buy up the stock.
“I have to thank the investors both from domestic and international institutions as well as retail investors for their interest and subscription of AAVs IPO. I also thank all of the company’s officers for their dedication and work towards this momentous milestone; the registration of AAV on the Stock Exchange of Thailand this 31 May.
I and all executives give you our word that we will continue to work towards the utmost quality fitting of your trust and we affirm to our investors that we will remain the major shareholders at no less than 60% in AAV after the IPO. Once our stock is listed on the SET, it will be under lock-up for 6 months, but we will retain no less than 51% of AAVs shares to comply with Thailand’s Aviation Act by having the 51% lock-up through the Thailand Securities Depository (TSD) for a period of no less than 5 years. On top of this, the stocks under the sponsorship portion that the Company has allocated to the employees at the IPO price will be under lock-up by a 1 year as a mean to motivate our staff upon contributing growth to our company and enhancing investors’ confidence” said Mr. Tassapon.
The proceed from this fund raising under the executives portion will be used to settle loans taken under the management buyout of AAVs stocks 5 years ago, while the proceed under the Company portion will use in subscription of Thai AirAsia’s right offering, increasing AAV’s ownership in Thai AirAsia from 51% to 55%. Thai AirAsia will, in turn, use the funds to further expand its fleet of Airbus A320 aircraft, increasing its number from 24 to 48 over the next 5 years in anticipation of higher demand from passengers.
Mr. Tassapon noted further that the main objective of listing on the SET was to strengthen Thai AirAsia financials in response of the trade liberalization of the upcoming ASEAN Economic Community (AEC). He affirmed the necessity of readying Thai AirAsia for the event and reiterated the airline’s goal of holding the highest market share in Thailand.
Ms. Suvabha Charoenying, Managing Director of Thanachart Securities Public Company Limited, speaking as a financial adviser and a joint Thai lead underwriter of AAVs IPO, acknowledged the exalted demand for AAVs stock, especially from the retail investor, making AAV’s IPO not available to all. Accommodating the high demand, Ms. Suvabha said, was challenging but she believes such a surplus will mean high liquidity for the stock once it is active in the stock exchange. AAVs 1,212.5 million IPOs were approximately 70% allocated to institutional investors both domestic and international as well as Thai AirAsia‘s staff , in which the latter are under shares lock-up for 1 year; while the remaining stocks have been acquired by retail investors. The existing shares held by the executives of 2,473 million shares or accounted for 51% of AAV’s shares will be under lock-up for 5 years from the listing date in order to assure investors’ confidence in AAV in a long run.
Mr. Suchai Sutasthumkul, Executive Director of CIMB Thailand, speaking as a joint Thai lead underwriter AAV’s IPO, thanked all involved in the offering for their cooperation and contribution to this success while stating his belief that the stock would become the new hot stock in the transportation and logistics sector. He expressed assurance in the growth potential of Asia Aviation as a major shareholder of Thai AirAsia, which itself has aggressive plans for growth with new flight routes already slated. He also mentioned the positive prospects of Thailand’s travel industry, which stand above its fellow ASEAN members. These factors combined, Mr. Suchai said, make AAVs stock a prime opportunity to be a part of the growth Thai AirAsia is sure to see.
Asia Aviation Public Company Limited or AAV, sold 1,212.5 million shares at a par value of 0.10 THB per share, comprised of 750 million new ordinary shares and 462.5 ordinary shares from existing shareholders, accounting for 25% of the paid up capital of 485 million THB. The shares were opened for subscription to the public from 23-25 May, 2012, having Thanachart Securities Plc. and CIMB as joint Thai lead underwriters together with the other co-underwriters from 10 brokerage houses and CIMB and Credit Suisse as international managers.