Bangkok Airways planning to launch IPO in 1Q2013

Saturday, 07 July 2012 12:13

Aviation News - International News

Thailand’s privately owned ’boutique’ carrier Bangkok Airways plans to list at the Stock Exchange of Thailand next year, the company’s president Puttipong Prasarttong-Osoth said.

Bangkok Airways Sukhoi SuperJet 100 palne, The plans to extend its                                                                                                                            network in Southeast Asia by raising money from an IPO in 2013

According to the Bangkok Post, the airline has commissioned Thai investment firm Bualuang Securities to draw up plans for an initial public offering (IPO) in the first quarter of 2013 for up to 40 per cent of the company’s shares. The airline reportedly wants to raise ten billion baht to consolidate its position as Thailand’s leading regional airline and to expand its route network in Southeast Asia.

 

The airline commissioned Bualuang Securities to plan the IPO which is to be held during 1Q2013. Bangkok Airways president Puttipong Prasarttong-Osoth said funds raised via the IPO would be used to finance growth plans, including fleet expansion and construction of new hangars at Bangkok Suvarnabhumi Airport

Mr Puttipong said the listing of the company on the Stock Exchange of Thailand (SET) is a key component of its strategy to consolidate its network in Southeast Asia, including resumption of flights to Vietnam, adding Mandalay as a second destination in Myanmar, launching a new route to the Lao capital of Vientiane.

 

The carrier also wished to expand to new markets such as Indonesia and the Philippines.

Bangkok Airways currently operates scheduled services with 18 planes to destinations in Thailand, Cambodia, China, Hong Kong, Laos, Maldives, Myanmar, India and Singapore. Its main base is Bangkok’s Suvarnabhumi Airport.

 

The airline is owned by Thai businessman Prasert Prasarttong-Osoth (92.31 per cent), Sahakol Estate (4.3 per cent), Bangkok Dusit Medical Services (1.2 per cent) and other private shareholders (2.19 per cent). It has around 1,900 employees and also wholly owns subsidiary airline Siem Reap Airlines.

 

The IPO of Bangkok Airways would be the second one of an airline operator in Thailand after Asia Aviation, the 51 per cent owner of  Thai AirAsia, which went public in May 2012. The IPO raised 4.5 billion baht. Stocks went up eight per cent at the launch, but later fell back on par with the IPO price. (Inside Investor/AC)