Thailand: Thailand's Securities & Exchange Commission has confirmed its intention to allow a major liquor and beer producer, Thai Beverage PCL, to offer shares to the public, The Nation reported on February 17. "If Thai Beverages submits an application to list on the stock market, it will not have any problems. However, the SEC will closely scrutinize Thai Beverages' information disclosure to comply with the authority's rules," Thirachai Phuvanat-Naranubala, SEC secretary-general was quoted as saying. The SET board is scheduled to discuss Thai Beverages' listing plan at a meeting next month. The company plans to raise THB40 billion from its initial public offering, which will be the country's largest IPO.

Thai Beverage, owned by billionaire tycoon Charoen Sirivadhanabhakdi, is the producer of Chang Beer and a number of market-leading whiskey labels. The listing is set to be the largest in Thai market history, with 40 billion baht expected to be raised from the initial public offering.

SCB Securities and Phatra Securities are advising the offering, Bangkok Post commented. But religious groups and former Bangkok governor Maj-Gen Chamlong Srimuang have come out against the listing on moral grounds, arguing that it was inappropriate for a liquor producer to list on the exchange and raise public funds for expansion. Mr Thirachai said that the SEC had in the past-approved public offerings for similar companies, and doubted that the listing of Thai Beverage would undermine social values. “Ultimately, however, the final decision will depend on the government's policy on the sale of liquor,'' he said.

Sopawadee Lertmanaschai, the chairwoman of the SET Capital Market Opportunity Centre, said a listing decision for Thai Beverage was likely to be completed by next month, following a review by the SET board and the SEC. “Right now, there is no firm conclusion. Everything is still under review,'' she said. “As for the moral arguments, clearly people have different opinions. But as the capital market, we are looking at it from the supply side, and don't see it as an issue.''

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