Jul 22, 2015
Institutional investors realized internal rates of return (IRR) of about 60 per cent per annum at the recent Bangkok Ranch (BR Group) initial public offering (IPO) on the Stock Exchange of Thailand (SET).
Danai Pathomvanich, Hatton Capital Partners managing director who advised the initial Bt5.7 billion BR Group management-led buyout (MBO) in December 2012 said that he was pleased with this investment’s tremendous returns.
“Institutional investors purchased their initial shares in December 30, 2012 at about Bt2.7 per share. Some foreign institutional investors sold their shares at the IPO for Bt8.8 per share on about July 15, 2015.”
BR Group with operating plants in Thailand and in Holland is one of the world’s largest duck purveyors.
According to initial SET filings, existing shareholders sold about 132 million of the 360 million shares being offered at the IPO.
Danai said a majority of 132 million shares sold were by international institutional investors.
Several local institutional investors held on to their shares.
“I would like to express my congratulations on the successful IPO yesterday, (15 July, 2105) which has contributed to our fund’s IRR exceeding 45 percent per annum. At the moment, it makes us one of Thailand’s Best Private Equity Funds,” said Thanawat Aroonpun of Straits Asset Advisor, the advisor to investors GSB Private Equity Fund and UOB Private Equity Fund.
At the initial MBO in December 30, 2012, Danai said institutional investors and the management buyout group invested equity of Bt1.6 billion and borrowed Bt4.1 billion baht from local financial institutions.
Hatton Capital Partners is a financial advisory and investment company with offices in Shanghai, Hong Kong and Bangkok with total assets under management exceeding $US250 million.
Danai said that Hatton Capital Partners clients are continuing to invest in Asia and especially ASEAN because they believe its future growth and dynamic human capital resources will continue delivering superior investment returns in the next several decades.
“We are currently actively evaluating investments in several infrastructure, food production and retail finance businesses in the region for our partners.”