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Thai Airways International
has announced a public offering of 385 million shares to investors with the aim to add value to the stock market and
enhance the airline’s image as the country’s national carrier, with the share
price to be announced on 19 November. The airline said it is confident that it will
be able to attract investors as a result of its experience and reputation as
well as its record of 43 consecutive years of profit.
THAI’s President, Mr. Kanok Abhiradee, said that the Ministry of Finance,
the Board of Directors and the six underwriters concluded their proposal
for the flotation of THAI’s shares. The Securities and Exchange Commission (SEC) has approved the offering of a total of 385 million
shares of Thai Airways, comprising 100 million existing shares held by the
Ministry of Finance as well as 285 million new shares.
Proceeds generated by the sales will be used as working capital for the
Suvarnabhumi Airport investment project, for upgrading inflight services
ranging from passenger seats to other amenities. For investors who wish to make large lot subscriptions, the Ministry of Finance as former
shareholder, has reserved an additional 57.75 million shares.
After the share flotation, THAI will remain a state enterprise, with the
government holding more than 50% of the shares. THAI is sixth largest Asian airline is terms of passenger traffic, according to
IATA.
The next step in the public offering is to hold a road show for both local
and foreign investors. The road show for local investors will begins
today, 3 November 2003 at the Queen Sirikit National Convention Center, on 4
November in Nakhon Ratchasima, on 5 November in Khon Kaen, on 6 November in Hat Yai, and on 7 November in Chiang Mai. On the
international front, a team of THAI executives and underwriters will meet
investors in Singapore, Hong Kong, New York, Boston, the United Kingdom.
The share price will be set on 19 November, and subscriptions will take
place on 20-21 November at every branch of Bangkok Bank, Siam Commercial Bank, and Thanachart Bank around the country.
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