Gulf Energy Development Pcl’s founder Sarath Ratanavadi is planning to invest 150 billion baht (about US$4.6 million) in power plants over the next four years after the company’s listing last Wednesday.
Gulf Energy is one of Thailand’s top three largest power generators and it has raised 24 billion baht (about US$733 million) from selling 533.3 million IPO shares.
The proceeds from Gulf’s IPO will be used to fund some of the outlay, while the remaining will be derived from loans.
“Gulf Energy will have stronger financial leverage for more expansion following the IPO, as new power plants require a large amount of money,” said Gulf Energy’s Chief Executive Officer Sarath.
The company is currently looking at a number of opportunities in Thailand and neighboring countries such as Myanmar, Laos, and Vietnam. These countries have been experiencing rapid economic growth and large demand for electricity.
According to Sarath, the investment plan will focus on gas-fired electricity and cover acquisitions of existing power plants and green-field projects. Gulf Energy generates almost all of its power from natural gas and will double the output to 4.647 megawatts by 2024.
For Gulf Energy, their IPO is the first-time largest share sale in Thailand since Jasmine Broadband Internet Infrastructure Fund priced a US$1.7 billion offering in 2015. The IPO has added to the US$2.5 billion of first-time share sales in the country, increasing from US$1.5 billion during the same period in 2016.
This news is published on Reuters.