Central mulling retail IPO

Central Group, one of Thailand’s biggest conglomerates, is studying options including a potential initial public offering (IPO) of retail assets, say people with knowledge of the matter.

The group is working on a restructuring of its retail operations ahead of a possible IPO as soon as next year, the people said, asking not to be identified because the information is private. The listing could include department store businesses owned by Central, said one of the people. Any share sale could raise at least US$1 billion, the people said.

A deal that size would be Thailand’s biggest first-time share sale since Jasmine Broadband Internet Infrastructure Fund’s $1.7 billion IPO in 2015. Central, which is targeting sales of 397.3 billion baht ($11.9 billion) this year, gets about 40% of revenue from its department store group, its website shows.

The group operates department stores under the Central and Central Embassy brands, as well as Zen men’s lifestyle stores and Super-Sports athletic equipment shops. It’s also the largest shareholder of Bangkokbased department store operator Robinson Plc.

Outside Thailand, it owns Italian department store La Rinascente, Danish retailer Illum and in 2016 it bought the Big C hypermarket chain in Vietnam.

Central, controlled by Thailand’s Chirathivat family, has a business empire that spans retail, property, restaurants and resorts. Its listed arms include Thailand’s largest mall developer, Central Pattana Plc, which is behind shopping centres including Central-World and has a market value of about $10 billion.

Deliberations are at an early stage, and the group hasn’t made a final decision about which businesses would be included in any listing, the people said. There’s no certainty the deliberations will lead to a transaction, according to the people. A representative for Central declined to comment.