The IPO to kick-start Thai infrastructure investment

Author: Ashley Lee | Published: 7 May 2013


KEY TAKEAWAYS

  • BTS Mass Growth Infrastructure Fund is the first infrastructure fund to list on the Stock Exchange of Thailand (SET);
  • Its listing reflects the Thai government’s plan to boost infrastructure investment. Aside from BTSGIF’s listing, Parliament recently passed a new law governing public-private partnerships;
  • Its structure involves a complex concession agreement in which BTSGIF will purchase the future farebox revenue from 23.5 kilometres of BTS SkyTrain, an electronic above-ground railway in Bangkok;
  • The deal was the first in Thailand to see a large amount of participation from cornerstone investors.

BTS Mass Transit Growth Infrastructure Fund’s (BTSGIF) initial public offering (IPO) was the first of its kind for the Stock Exchange of Thailand (SET), and is expected to spur infrastructure investment in Thailand.

BTSGIF’s THB 62.51 billion IPO ($2.1 billion) was the largest public offering ever by a Thai company, and the largest IPO in Asia...