Price for OR listing fixed at B16-18

IPO scheduled to take place on Feb 10

PTT Oil and Retail Business Plc (OR) has priced its initial public offering (IPO) at 16-18 baht, which will be offered to retail investors from Jan 24 to Feb 2 and institutional investors from Feb 3-5, according to the company’s filing with the Securities and Exchange Commission (SEC).

For PTT shareholders, subscriptions are available during Jan 25-28.

At the offer price of 16-18 baht per share, the price-to-earnings ratio (P/E) stands at 23.9-26.9 times, relatively lower than other international and domestic companies with similar businesses that have an average P/E of 31.7 times.

OR is offering up to 3 billion newlyissued ordinary shares, divided into 2.61 billion common shares and 390 million over-allotment shares, or a greenshoe option.

Shares of OR are expected to be listed on the Stock Exchange of Thailand on Feb 10, according to an industry source.

The company appointed five financial advisors to assist in the SET listing process, including Bualuang Securities Plc, Finansa Securities Limited, Kasikorn Securities Plc, Phatra Securities Plc and Tisco Securities Company Limited.

The reservation of IPO shares will be done through a small lot first system which prioritises retail investors with a smaller amount of funds.

Investors will be able to reserve shares through brokers or banks where each reservation will be verified with the customer’s identification number.

OR is a distributor of petroleum products and operator of both international and domestic non-oil retail businesses including coffee, food and beverages and convenience stores.

Mongkol Puangpetra, executive vice-president of KTBST Securities, said OR will be able to raise over 50 billion baht from the IPO with a market cap of around 230 billion baht. Its size will be big enough to be added to the SET50 Index which will in turn make it more attractive to investors.

Mr Mongkol said OR’s growth will rely on the economy’s cycle as its core business is sales and distribution of petroleum products and retail.

“OR is different from PTT’s other subsidiaries because its main source of revenue is retail businesses which provide more sustainable and stable income than the oil business as the prices of oil, gas and petrochemicals fluctuate in line with global prices,” said Mr Mongkol.

Funds from the IPO will be used for business expansion including expansion of its gas station network under the brand “PTT Station” and retail network, marketing campaigns, investment in warehouses and distribution centres for the oil business, and loan repayment.