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The Stock Exchange of Thailand (SET) will list True Telecommunications Growth Infrastructure Fund, with a size of THB 58.08 billion (approx. USD 1.80 billion), on its main board on December 27, under the ticker "TRUEIF," the first telecommunication infrastructure fund and the country’s third infrastructure fund to list this year.
Chanitr Charnchainarong, SET executive vice president, said that TRUEIF would be trading in the Information and Communication Technology sector. It sold 5,808 million units via initial public offering (IPO) at THB 10 per unit, for a total worth THB 58.08 billion from December 9 to 19. Siam Commercial Bank pcl is the financial advisor, and SCB Asset Management Co., Ltd. is the management company.
TRUEIF invests in the right to the net revenues from the rental of 5,845 telecommunication towers, core fiber-optic cable grids and related transmission equipment (FOC system), According to HSPA lease agreement in which will expire in 12 years (on August 3, 2025), The fund has the right to buy or transfer some of these assets once the contract expires. TRUEIF also invests the right to 6,000 telecommunication towers (delivery of 3,000 towers due in 2014 and the rest by 2015), FOC system, and broadband service in upcountry areas.
Chotika Sawananon, president of SCB Asset Management, said that TRUEIF enabled investors to join in the telecommunication infrastructure project and got a secure return from the True Group, which rents, maintains, and manages with the fund for more than 10 years. In addition, the fund may further grow by subletting its infrastructure to other telecommunication service providers. And take profit as the industry grows. Consequently, the fund was well received from both retail and institutional investors during the IPO period.
TRUEIF has dividend policy and refund to the unit holders as stated in the fund scheme. The fund’s dividend policy is to pay at least twice a year if the fund has sufficient retained profits at no less than 90 percent of the adjusted net profit. The fund's top three unit holders after its IPO are True corporation public company limited (TRUE) 33.24%, The Siam Commercial Bank public company limited (SCB) 9.04% and Beyond Advanced Limited 6.03%
For more information, please see TRUEIF's prospectus at the Securities and Exchange Commission's website at www.sec.or.th and general information at www.true-gif.com and SET's website at www.set.or.th
