defensive-qualities-keeps-thai-beverage-ipo-afloat

Defensive qualities keeps Thai Beverage IPO afloat

Biggest IPO by a food and beverage company globally this year after price is fixed above the bottom of the range despite challenging markets.
Thai Beverage has priced its initial public offering towards the low end of the price range, allowing it to raise S$1.37 billion $866 million in what can only be described as very challenging markets.

Ironically though, observers say the company, which is ThailandÆs leading producer of beer and spirits, was actually quite well suited for this environment given its dominant position in its home market, its strong cashflows and above average dividend yield.

ôItÆs a high quality blue-chip name with defensive characteristics and with an extremely strong franchise in the consumer space which is a key theme for investors at the moment,ö says one observer. This explained the momentum that enabled the newcomer to price...
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