Thai Star Petroleum to Raise Up To $735M from IPO in 4Q


BANGKOK, July 14 (Reuters) – Thai refiner Star Petroleum Refining PCL (SPRC) could raise 20-25 billion baht ($588-$735 million) in an initial public offering that would also mark the exit of energy firm PTT PCL, two people with knowledge of the deal said on Tuesday.

At the top-end of the range, the IPO would be Thailand's second biggest this year after telecoms group Jasmine International PCL listed a $1.7 billion internet fund in February.

The deal is scheduled for the fourth quarter, the sources said. SPRC will sell 1.92 million shares in the IPO, largely made up from state-run PTT's 36 percent stake, it said in a regulatory filing last week.

Executives at both SPRC and PTT, Thailand's largest energy firm, declined to comment on the pricing of the deal. The sources also declined to be named as the details of the IPO remained confidential.

A subsidiary of U.S. firm Chevron Corp will remain the majority shareholder in SPRC after the IPO with a 55 percent, the sources added.

PTT had long sought to sell its stake in SPRC amid criticism that it holds a monopoly over all aspects of the energy sector, but the IPO was delayed for years by regulatory snags and disagreements with the Chevron subsidiary.

SPRC operates a 165,000 barrel-per-day refinery in eastern Rayong province and its capacity accounts for 13.2 percent of Thailand's total.

SPRC made a net loss of $194 million last year, compared to a $128 million net profit in 2013, as global oil prices fell.

Bualuang Securities, Finansa, Phatra Securities and Siam Commercial Bank are the deal's advisors, the sources said.

($1 = 34.0200 baht)

(Reporting by Manunphattr Dhanananphorn and Khettiya Jittapong; Editing by Miral Fahmy)


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