Two Thai Companies to Add Value to SEA Stock Markets By Raising $2.5 Billion in IPO

Two Thai companies intend to raise up to $2.5 billion in combined IPO proceeds on the Bangkok stock exchange, according to two people with direct knowledge of the plans, which could join a swelling pipeline of Southeast Asian IPOs this year.

According to the sources, Big C Supercenter, the supermarket arm of Thai listed trade giant Berli Jucker headed by billionaire Charoen Sirivadhanabhakdi, might raise up to $1 billion in an IPO as early as the fourth quarter of this year.

CPF Global Food Solution, a subsidiary of Thai food conglomerate Charoen Pokphand Foods, is also anticipated to raise up to $1.5 billion and list on the Thai stock exchange by the end of the year, according to sources who declined to be identified because the matter is confidential.

According to Dealogic data, the two listings would boost Thailand's IPO activity, which has raised $454 million this year. Thai Life Insurance raised over 35 billion baht ($1.01 billion) in an IPO of a similar scale in July of last year.

Following the change of government last month, the IPOs could provide insight into investors' interest for Thailand.

According to the company's most recent fact sheet, Berli Jucker purchased Big C in March 2016. Big C runs about 2,000 locations in Thailand, Laos, Cambodia, and Vietnam, including hypermarkets, supermarkets, convenience stores, and pharmacies.

In March, Berli Jucker approved the IPO.

According to their website, CPF Global Food Solution distributes fresh and processed food items throughout Thailand and around the world. According to its website, its businesses include fresh meat, processed food, restaurants, pet food, and other products such as sauces and dairy.

Charoen Pokphand filed for an initial public offering (IPO) in April.