Traders are seen in front of a screen showing trading figures in red at the Thailand Stock Exchange building in Bangkok, Thailand, March 13, 2020. REUTERS/Juarawee Kittisilpa
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BANGKOK, July 25 (Reuters) – Shares in Thai Life Insurance Plc (TLI) (TLI.BK) made a weak debut on the Bangkok Stock Exchange on Monday in Southeast Asia’s largest initial public offering (IPO) so far this year.
TLI stock was up 0.63% on the bell’s open but quickly lost ground in line with the market to remain flat towards the afternoon session.
The broader market (.SETI) was up 0.24% by 0422 GMT
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TLI shares were valued at 16 baht and raised at least 34.4 billion baht ($937 million) from the sale of 2.3 billion shares, with about half coming from investors who bought the transaction before it went public had, as can be seen from the official documents.
“Today’s listing will help Thai Life grow strongly and we will use the funds to improve business efficiency and service to customers,” Chief Executive Officer Chai Chaiyawan said ahead of the opening bell.
The volume of capital markets deals, particularly IPOs, has fallen sharply in Asia in 2022 as global financial markets continue to be rocked by geopolitical developments, rising interest rates and ongoing uncertainty stemming from the regulatory upheaval in China.
Thai Life’s flat open was a reflection of its high valuation and broader market performance, analysts said.
“This was a very poor performance for such a high-profile IPO, reflecting the high IPO price and generally weak market sentiment,” said Athaporn Arayasantiparb, analyst at M Corp Review.
The flat debut is consistent with Thailand’s listed insurance sector, which has weakened over the past month.
Share prices of major insurance stocks have fallen about 5.3% since TLI published its revised prospectus ahead of the IPO on June 24, according to Arun George, an analyst at Global Equity Research, which publishes on Smartkarma.
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TLI has the third largest market share among Thai insurers and competes with other market leaders – AIA, FWD and Muang Thai Life Assurance. It plans to use funds from the IPO to invest in digital transformation and strengthen partnerships.
TLI’s IPO is Thailand’s largest since microfinance firm Ngern Tid Lor (TIDLOR.BK) went public last year, raising 38 billion baht.
The insurer’s IPO was the largest equity markets deal in Southeast Asia in 2022, according to Refinitiv data. In the first half of 2022, there were $2.45 billion worth of IPOs in the region, compared to $6.1 billion in the same period of the previous year.
($1 = 36.7000 baht)
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Reporting by Chayut Setboonsarng in Bangkok and Scott Murdoch in Hong Kong; Edited by Ed Davies and Bradley Perrett
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