Bangkok--17 Mar--Empire Communications
The Securities and Exchange Commission (SEC) has approved arrangements for the second offering of TICON Property Fund (TFUND).
These arrangements involve increasing capital from 1.75 billion Baht to 3.80 billion Baht by issuing 205 million new units at par 10 Baht. Eighty seven and a half million units will initially be reserved for a rights issue to existing unitholders on the basis of 1 new unit for 2 units held, with the remainder being subject to a private placement to Thai and international investors. DBS Vickers Securities (Thailand) Co., Ltd. and Bualuang Securities Public Company Limited will act as Joint Lead Managers and Underwriters for the offering.
The proceeds of the capital increase will be used to acquire 44 freehold factories from TICON Industrial Connection Public Company Limited (TICON), to add to the initial portfolio of 39 factories sold to the Fund on its establishment in April last year.
A domestic roadshow has been undertaken and roadshows in Hong Kong and Singapore are currently under way. “Investor interest in the second offering has been very keen”, said Maris Tarab, Managing Director of ING Funds (Thailand) Co Ltd. “This is the first time a Thai listed PFPO has undertaken a secondary offering, and the increased size of the offering and of the overall fund, coupled with the ability to distribute on a placement basis rather than the ‘small lots first’ subscription method of the IPO, and the opportunity for enhanced yield, has made TFUND more attractive to institutional investors”.
Virapan Pulges, Managing Director of TICON Industrial Connection Public Company Limited (TICON), TFUND’s sponsor and Property Manager, agreed that the improved distribution yield and the increase in TFUND’s size and liquidity should add to the popularity of TFUND. “This accretive investment within a year of the establishment of TFUND is very much in line with the policy of both ING as Fund Manager and TICON as sponsor to grow the Fund continuously with the acquisition of good quality industrial and warehousing investments from both TICON and third party sources”.
The placement of the new units and the sale of the properties are due to be completed in April.
Investment contains risk, please carefully study the fund prospectus before making investment decision.
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