Platinum Mall parent in IPO
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Platinum Group, the parent of the popular Platinum wholesale fashion mall in Bangkok’s downtown Pratunam district, is to launch an IPO.
The group plans to raise 8 billion baht (US$247 million) through the issue of 700 million new shares. A book-building process is underway this week, which will be followed by a distribution in mid-March.
Platinum Group president Somboon Wongrasamee says the company plans to use the funds to refinance a new project The Market by Platinum, under construction in Ratchadamri and scheduled to open in 2017. Three times the size of Platinum Mall, the centre is expected to boost the group’s income by 1 billion baht ($31 million) annually when complete.
Further funds will be dedicated to construction of a skywalk connecting the luxury Gaysorn shopping centre with Platinum Mall and construction of a hotel in Koh Samui.
Wongrasamee says the mall had a unique place in Thailand’s retail landscape as it attracted both local consumers and tourists.
“There are not many wholesale operators in Thailand, so the company will expand to upcountry branches to take advantage of long-term market growth opportunities,” he told the Bangkok Post in a recent interview.
Questions & Answers
How much money does Platinum Group aim to raise from this IPO?
Platinum Group plans to raise 8 billion baht (US$247 million) through the issue of 700 million new shares. A book-building process is currently underway this week.
What are the main plans for using the funds generated by the IPO?
The funds will primarily refinance 'The Market by Platinum' project, under construction in Ratchadamri. Further funds are allocated for building a skywalk connecting Gaysorn with Platinum Mall and a hotel in Koh Samui.
When is the new project, The Market by Platinum, expected to open and how much income will it generate?
The Market by Platinum is scheduled to open in 2017. When complete, this centre is expected to boost the group’s income by 1 billion baht ($31 million) annually.