Bangkok's skytrain operator raises $2.13 billion in IPO
An infrastructure fund backed by revenues from the BTS SkyTrain, the BTS Rail Mass Transit Growth Infrastructure Fund, has raised 62.5 billion baht ($2.13 billion) in the biggest initial public offering (IPO) in Thailand's history.
Different sources have informed that the fund sold 5.79 billion units at 10.8 baht each, putting the total deal at 62.5 billion baht ($2.13 billion).
Bangkok's skytrainThe BTS Rail Mass Transit Growth Infrastructure Fund is also the third largest IPO to take place worldwide this year and the largest one in Asia this year, followed by the $1.3 billion Singapore IPO of a Temasek Holdings-backed real estate investment trust in February.
The skytrain system entered into service in 1999 and now spans 23.5 kilometers. It carries more than 530,000 passengers each day. Bangkok's skytrain has recently added a few new stations but the government plans to expand rail coverage in greater Bangkok to 508 kilometers by 2029, from 79.5 kilometers now.
Morgan Stanley and UBS were the international bookrunners while Phatra Securities was the local manager of the sale. In the pre-IPO the fund announced it had already received commitments from 22 cornerstone investors, including Morgan Stanley Investment Management, Schroder Investment Management, and the Thai unit of French insurer AXA Insurance.
BTS Group Holdings PCL listed the firm, BTS Rail Mass Transit Growth Infrastructure Fund, who will purchase a stream of skytrain transit-fare revenue from BTS, providing trust unit-holders with a steady dividend payout. BTS said it hopes to use the proceeds from the IPO to finance new mass-transit projects.
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