Strong demand for shares in Tesco’s Thai property fund has seen their value jump almost 10 per cent on the funds Initial Public Offering (IPO).
The IPO raised some US$600m when shares went on sale in mid February, making it the largest in the country since 2006.
A report by Reuters suggested shares in the fund benefitted from brand recognition with the high profile retailer operating over 900 stores in the country, including 133 hypermarkets.
“The property fund is outstanding in terms of its brand,” local analyst Sureeporn Teewasuwet told Reuters. “Demand was overwhelming at the IPO offering. So investors who missed the allotment bought from the market today.”
Shares opened at Bt11.40 (US$0.37) on the Bangkok stock exchange after they were set at Bt10.40 for the IPO.
Demand for shares in the IPO were nearly 11 times the volume made available, the report stated.
The Tesco Lotus property fund comprises 17 retail properties across the country, each featuring a Tesco Lotus supermarket. It is Thailand’s largest property fund.
