Thailand set to be SE Asia's hottest IPO market with US$5b of planned floats in 2H2019

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[BANGKOK] Thailand is set to see the most funds raised from IPOs in Southeast Asia this year, with more than US$5 billion expected to be garnered in the second half, sources said, as a tourist boost to the economy trumps jitters stoked by inconclusive elections. Read more at The Business Times.

South-east Asia's second largest economy is expected to see listings from the retail arm of state-owned oil company PTT Pcl, the hospitality business of tycoon Charoen Sirivadhanabhakdi's empire, and a unit of the country's largest retailer Central Group, people familiar with the matter said.

Investors are focusing on the country's stable economic growth and currency and do not see any big risk from political uncertainty. Preliminary election results show Pheu Thai, the leading anti-junta party, has won the most constituency seats, while the pro-army Palang Pracharat gained the most votes, but each is unable to form a government on its own.Low interest rates and a hunt for high-yielding assets are driving investors to allocate money for equities, fund managers said.

Last year, Vietnam was the biggest market for IPOs in Southeast Asia, with listings there raising US$3.4 billion, according to data from Refinitiv. "Assuming the final election outcome does not impact consumer and investor sentiment negatively, we are hopeful that market conditions in the second half of the year will be constructive for the strong Thai pipeline to push through," he said.

 

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