Home ›› 26 Jul 2022 ›› Stock
Thai Life Insurance Plc (TLI) shares made a weak debut on the Bangkok stock exchange on Monday in what is Southeast Asia’s largest initial public offering (IPO) so far this year.
TLI stock rose 0.63 per cent at the opening the bell but quickly lost ground in line with the market to be flat heading into the afternoon session.
The broader market was up 0.24 per cent by 0422 GMT.
TLI shares were priced at 16 baht, raising at least 34.4 billion baht ($937 million) from the sale of 2.3 billion shares, with about half from investors who bought before the deal went public, according to regulatory filings.
“Today’s listing will help Thai Life grow with strength and we will use the funds to improve business efficiency and service for customers,” chief executive officer Chai Chaiyawan said before the opening bell.
The volume of capital markets deals, especially IPOs, has fallen sharply in 2022 in Asia as global financial markets remain roiled by geopolitics, rising interest rates and ongoing uncertainty caused by Chinese regulatory upheaval.
Thai Life’s flat opening was a reflection of high valuation and broader market performance, analysts said.
“This was a very weak showing for such a high profile IPO, reflecting the high IPO price and generally weak market sentiments,” said M Corp Review analyst Athaporn Arayasantiparb.
The flat debut is in line with Thailand’s listed insurance sector, which has weakened over the past month.
