PTG to float IPO in Thai bourse

Thailand’s PTG Energy Plc (PTG) submitted a filing with the Securities and Exchange Commission on January 2 to float its shares on the Thai Bourse, seeking to raise funds to open 100 petrol stations annually over the next five years.
The operator of PT stations aims to sell 420 million shares in an initial public offering (IPO) this year, representing 25.15% of its existing registered capital, at a par price of THB 1 (US$0.03) a share.
PTG’s current registered capital is THB 1.67 billion (US$55.9 million), of which THB 1.25 billion (US$41.9 million) is paid up. After the IPO, paid-up capital will increase to THB 1.67 billion baht, said Chief Executive Officer Pitak Ratchakitprakarn.
Of the total IPO shares, 386.6 million will be offered to the public, while the remaining 33.4 million shares will be made available to directors, executives and employees.
Sage Capital is the financial adviser and Nomura Securities the underwriter of this IPO.
Although other oil companies have scaled down, and some have shelved their investment budgets altogether, PTG plans to expand its petrol station network in Thailand. According to Pitak, while the petrol retail market in Bangkok and surrounding areas are experiencing a glut, this is not the case in large cities in the central and northeastern provinces. The company only has 30 outlets in Bangkok. However, it has expanded from 360 units in 2010 to 570 units across the country, and the company’s ambition is to displace Royal Dutch Shell’s Thai unit, which is currently in third place, after PTT and Bangchak Petroleum Plc.
Last year, PTG also improved its non-oil services and introduced a new concept of very large petrol stations with the first one located in Ayutthaya. By the end of next year, the company aims to have 700 petrol stations in operation, mostly in the central region and in the Northeast.
One factor that has enabled PTG to maintain cost competitiveness is its logistics operations, including fuel tank farms and oil trucks. Trucks are now able to carry 45,000 liters of petrol each, up 50% from 30,000 liters previously to trim down transportation cost. 
Pitak said PTG’s new strategic oil stations will also target trucks and other large vehicles that consume a large amount of petrol, in addition to passenger cars and pick-ups.
Formerly known as Paktai Chueplerng Co, the company was established in 1988 after Thailand liberalized the retail oil business. The company became heavily indebted following the 1997 Asian economic crisis, with total liabilities rising to THB 3.6 billion (US$120 million) over a year.It went through debt restructuring several years ago. In the first half of this year, the company eliminated a THB 200 million (US$7.7 million) accumulated loss. (January 7, 2013)