Esso Thailand shares debut at 9% premium

Esso Thailand’s shares opened 9% above their offer price at 10.90 baht (US$ 0.34) on May 6, their first day of trading on the Stock Exchange of Thailand. Esso, which operates a 170,000 barrel per day refinery in Sri Racha and enjoys a 13% retail market share, offered 930.4 million shares in its initial public offering in April, raising 9.3 billion baht (US$288.2 million) and making it Thailand’s largest IPO in two years. A listing on the local stock exchange was a prerequisite for oil companies building oil refineries in Thailand, as the government was keen to ensure local citizens could hold a stake in the strategically important industry. But most listing plans were derailed following the 1997 Asian financial crisis, which left refiners saddled with debt and net losses. Star Petroleum Refining Company (SPRC), a joint venture between Chevron and state-owned PTT, is expected to list by the end of this year. (May 7, 2008)