Tesco's Thai IPO

Tesco Lotus raises $450 million from public investors

Tesco’s Thai property fund prices its IPO at the top of the range to pull off Thailand’s biggest listing since 2006.
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A vendor in a boat outside a Tesco Lotus Express store during floods in Ayutthaya (Bangkok Post)
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<div style="text-align: left;"> A vendor in a boat outside a Tesco Lotus Express store during floods in Ayutthaya (Bangkok Post) </div>

The Thai unit of UK supermarket chain Tesco has raised a total of Bt18.4 billion $602 million from the initial public offering of a property fund comprising 17 malls anchored by Tesco Lotus stores. However, 25%, of the deal was bought by Tesco-controlled Ek-Chai Distribution System, suggesting the property fund really only raised 75%, or Bt13.8 billion $450 million from public investors.

The deal was priced at the top end of the range at Bt10.40 per share, giving an implied yield of 6.5% for the fiscal year to February 2013. Thai property funds are similar to real estate investment trusts Reits and the Tesco fund, which goes by the somewhat...

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