PTT to list their Retail Arm
It was in the news yesterday that PTT will most likely list their Retail arm, so here are the facts:
- As of 2013 they operated 1,382 stations
- They are looking to raise upwards of USD 2 bn
- The size of the IPO could beat BTS’s infrastructure fund, BTSGIF which was as USD 2.1 bn – hence the largest in Thailand’s history.
“There’s a recognition among oil companies that they may not be the best owners of their retail and marketing assets as these are not their core competency,” said Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co. “We saw that with Sinopec, and it follows very much in line with what Western oil companies have also done.”
Source: Bloomberg
This does lead me to the question that if PTT’s retail arm is worth this much then what could the same be said for SUSCO and PTG on a relative valuation basis (mkt cap/# of stations)?
mikerkeag
Two questions, Pon:
1. What do you think the IPO will float at?
2. How will this affect the current PTT price?
Thanks,
Mike
Pon
Hi,
1. No idea on the pricing for the PTT retail IPO, once I know more i’ll post it up
2. Positive (as already since in the price movement of PTT) – any time a, lets say HoldCo, lists its sub the HoldCo generally performs well price wise. Now in this instance PTT is already worth some THB 1 trillion in market cap, I’m doubt a THB 66 bn IPO would impact it “that” much.