July 31--The Securities and Exchange Commission (SEC) has approved an initial public offering of Bangkok Land Plc's real estate investment trust (REIT) worth up to 20 billion baht.
Thailand's first REIT ? the Impact Growth REIT ? is due to be launched in September as planned.
"We are waiting for approval to list on the stock market from the Stock Exchange of Thailand," said Bangkok Land chairman Anant Kanjanapas.
The property developer previously planned to hold the IPO in the final quarter last year, but it was delayed pending approval from stock regulators.
The REIT will raise up to 20 billion baht from the public to buy most of Impact Exhibition Management Co's freehold property including Impact Arena and Challenger Hall. Impact Exhibition Management is a subsidiary of Bangkok Land.
The REIT will have freehold assets and be listed on the SET, with RMI Co as fund manager, Kasikorn Asset Management as trustee and Impact Exhibition Management as the property manager.
Kasikornbank and Maybank Kim Eng Securities (Thailand) have been appointed financial advisers and distributors for the REIT.
Bangkok Land will use proceeds arising from the unit trust offering to buy a 50% stake in the REIT and expand its property business.
Mr Anant dismissed rumours spreading in trading rooms about a treasury stock scheme.
"It is groundless that the company will use 5 billion baht to buy back 10% shares to lower excessive liquidity and boost the share price. We have no plan to do so at the moment. We are prudent in any spending. It is a rumour and unreliable," he said.
However, the company's shareholders yesterday approved treasury stock to allow Bangkok Land to buy back shares when the time is right, a source said.
The source said Bangkok Land is ready to buy back its shares as it has cash flow of 3 billion baht and another 2 billion in retained profit. Moreover, it is long-term debt-free.
BLAND shares closed yesterday on the SET at 2.14 baht, down six satang, in heavy trade worth 3.2 billion baht.
(c)2014 the Bangkok Post (Bangkok, Thailand)
Visit the Bangkok Post (Bangkok, Thailand) at www.bangkokpost.com
Distributed by MCT Information Services