SET welcomes Thailand Future Fund on October 31

Stocks and Financial Services Press Releases Tuesday October 30, 2018 16:54
Bangkok--30 Oct--SET

The Stock Exchange of Thailand (SET) will list Thailand Future Fund (TFFIF), a new fund-raising source for public infrastructure development, on October 31, under the ticker symbol "TFFIF", with a market capitalization at its initial public offering (IPO) of THB 45.7 billion (approx. USD 1.4 billion).

SET President Pakorn Peetathawatchai said TFFIF would list on SET and start trading in the Services industry group, Transportation & Logistics sector.

TFFIF was incorporated on November 24, 2016, with an initial registered capital of THB 1 billion, and the entire units are held by the Ministry of Finance. TFFIF offered 2.3 billion newly issued units to general subscribers during October 12-19, 2018 and 2.17 billion shares to special subscribers, cornerstone investors and the Ministry of Finance during October 22-25, 2018 at a par value of THB 10 per unit, for a total of THB 44.7 billion. Krungthai Asset Management pcl (KTAM) and MFC Asset Management pcl are fund managers, while Phatra Securities pcl, Finansa Securities Co., Ltd. and Krungthai Bank pcl are financial advisors and lead underwriters.

TFFIF has invested in the 30-year rights starting from the transfer date in pursuance of the Revenue Transfer Agreement (RTA) to earn a 45 percent of the net toll revenue after value added tax (VAT) collected from two expressways: Chalong Rat Expressway (Ram Inthra- At Narong- Bangkok Outer Ring Road Expressway) and Burapha Withi Expressway (Bang Na-Chonburi) with a combined distance of 83.2 kilometers, while the Expressway Authority of Thailand (EXAT) - a state enterprise under the supervision of the Ministry of Transport - still possesses the assets and manages the expressways. Moreover, the Ministry of Finance is committed to holding at least 10 percent in the fund for five years starting from its first day of trading on SET.

KTAM Chief Executive Officer Chavinda Hanratanakool and MFC President Prapa Puranachote stated that significantly TFFIF has opened up opportunities for the general public to take part in investment in quality transport infrastructure development of the government and state enterprise to foster the country's competitiveness. As the toll revenue stream has been steady with constant growth in the past years, TFFIF is deemed to be a good investment choice with steady and long-term returns for unit holders. In addition, the foreseeable growth opportunities will come from the expressways' traffic volume, the network expansion connecting with other expressways, as well as TFFIF's additional investments. Furthermore, retail investors who are TFFIF's unit holders will benefit from personal income tax exemptions on dividends received from infrastructure funds for a period of eight years.

TFFIF's dividend policy is to pay dividends no less than 90 percent of the adjusted net profit to unit holders as specified in the fund management project plan at least twice a year in case the fund has sufficient retained earnings and does not have accumulated loss. In each accounting year. TFFIF's three major unit holders after IPO are the Ministry of Finance (10.00 percent), AIA Company Limited–EQ3-P, and Muang Thai Life Assurance pcl (at 3.76 percent each).

For more information on TFFIF, please see the fund's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visit www.set.or.th.

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