Big C Retail Corp., a supermarket and convenience store company controlled by Thailand’s richest person, postponed a planned initial public offering, citing market conditions.
(Bloomberg) — Big C Retail Corp., a supermarket and convenience store company controlled by Thailand’s richest person, postponed a planned initial public offering, citing market conditions.
The unit of Berli Jucker Pcl, billionaire Charoen Sirivadhanabhakdi’s listed conglomerate, delayed the stock listing after the management considered the interest of shareholders and other stakeholders, Big C Chief Executive Officer Aswin Techajareonvikul said in a statement.
Big C was seeking to raise about $1 billion in its first-time share sale, Bloomberg News reported in January. The company will revive the share sale plan again as soon as capital market sentiment improves, he said.
The delay came a week after the CEO announced plans for a dual listing in Hong Kong and Bangkok as soon as the fourth quarter. Hong Kong’s active trading volume and exposure to Chinese and global investors make the city an ideal location for Big C to list outside its home market, Aswin was quoted as saying by South China Morning Post. The retailer acquired the financial hub’s AbouThai chain and plans to rebrand the 24 locations as Big C stores.
Big C is also the country’s second major IPO postponement this week, as Southeast Asia’s second-biggest economy has been affected by the delay in new government formation as well as slower-than-expected growth. Siam Cement Pcl, one of Thailand’s largest industrial conglomerates, on Monday scrapped a proposed initial public offering for its chemicals unit, citing unfavorable market conditions.
Read More: Siam Cement Scraps $2 Billion Chemical Unit IPO Amid Slump
Charoen’s retailer had sounded out investment bankers for proposals starting in November, people familiar with the matter said at the time. The tycoon has a net worth of $12.8 billion, according to the Bloomberg Billionaires Index.
International funds have dumped about $3.8 billion of Thai equities this year, sending the key stock index down about 6%. Berli Jucker shares closed 2.8% lower in Bangkok on Tuesday compared with a 0.4% gain for the benchmark SET index.
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