Thailand’s IPO & M&A activity sinks to the abyss with political turmoil


Thailand’s initial public offering (IPO) and mergers and acquisition (M&A) activities have slowed. Bangkok Post, a local Thai press, reports that the months-long political unrest has delayed inbound and outbound merger-and-acquisitions (M&A) deals, given that both buyers and sellers are opting to hold off until the risk has eased, says PricewaterhouseCooperspartner Kajornkiet Aroonpirodkul. PwC has 10-20 M&A and fund-raising deals related to Thai companies in the pipeline now, and most of them will be delayed until Thailand’s political situation has improved, probably in the latter half of the year, he saidThai firms are looking to acquire overseas businesses to expand their footprints into international markets with the focus on energy and retail, while foreign companies are seeking investment opportunitiesin Thailand, particularly in the financial, food and restaurant, and technology sectors.

Meanwhile, one after another IPO plan has been delay. The latest is the Thai real estate group controlled by billionaire Charoen Sirivadhanabhakdi. Charoen has delayed a plan to raise at least 25 billion baht ($780 million) from selling a property fund to the public, fund manager Krung Thai Asset Management (KTAM) said. The offer of the Thai Hotel Investment Fund will be postponed to the first quarter of 2014 from the end of this year, mainly due to regulatory process and unfavourable market conditions brought about by Thailand’s political troubles.


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