Thailand: TPIPP remains on track to list

Thailand: TPIPP remains on track to list

TPI Polene Power Plc (TPIPP), wholly owned by Thailand's third-largest
cement maker, TPI Polene Plc (TPIPL), will continue with a plan to list on
the Stock Exchange of Thailand by March after the move was delayed from last
year.

The move to list TPIPP, an operator of waste-to-power plants, is part of a
plan by TPIPL to spin off its power business, although the signing of a
power purchase agreement with the Electricity Generating Authority of
Thailand has been delayed from last year.

Prasert Ittimakin, senior vice-president for finance and accounting at
TPIPL, said TPIPP plans to float 2.5 billion shares, or 29.8% of total
shares, in an initial public offering (IPO).

Maybank Kim Eng Securities, Tisco Bank and CIMB Thai Bank are the financial
advisers.

Before the listing, the company will hold roadshows in Singapore, Hong Kong,
Malaysia and the UK to attract foreign investors.

TPIPP's waste-to-energy process is comprised of two feedstocks from waste --
one from a municipality that will be processed into refuse-derived fuel
(RDF) and the other the heat generated from TPIPL's cement production
process.

He said the IPO process would be done during March this year and the price
per share unit is expected to be released by the third week of March. The
amount of capital expenditure for the IPO would also be finalised that week.

Mr Prasert said cash raised from the IPO would partially be used to finance
ongoing power plant projects in its pipeline at a cost of nearly 10 billion
baht while the rest would be used to refinance 5 billion in debt incurred
from TPIPL expanding its renewable power business.

TPIPP operates waste-to-energy power plants with a combined capacity of 150
megawatts, including two units of heat recovery power plants and two units
of RDF power plants.

Its waste-to-energy power plants receive an adder tariff of 3.5 baht per
kilowatt hour (unit) the first seven years of operation.

This year TPIPP plans to expand its power-generating capacity by another 290
MW by developing another three power plants worth around 10 billion baht of
investment, including a 150MW coal-fired power plant, a 70MW RDF power plant
and a 70MW coal-fired plant blended with RDF.

All three plants are expected to receive environment impact assessment
approvals within this year.

TPIPL shares closed yesterday on the SET at 2.36 baht, down eight satang, in
trade worth 3.10 billion.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1186985/tpipp-remains-on-track-to-l
ist

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com