Report
EUR 88.49
For Business Accounts Only
As per the exchange announcement, PTTOR will offer up to 2.7bn primary shares in the IPO, of which 300m will be sold to existing shareholders of PTT. There will be a greenshoe option of 300m shares. PTT will retain 75% stake in PTTOR after the IPO.
Based on PTTOR’s total revenue, the business would look unexciting given that most of its revenue is generated from the oil business. However, segment gross profit breakdown shows that its non-oil business is the one to look out for. The non-oil business includes the network of Amazon Cafes in Thailand and other countries and operates with a much higher gross margin than its main oil segment.
In this note, we will look at PTTOR’s main business segments, how they have performed over the past three years, and share our thoughts on the profit driver.
PTT Oil and Retail IPO - F&B business is the driver of profits
PTT (PTT TH) is planning to list its subsidiary, PTT Oil and Retail (PTTOR TH) in 2020. PTTOR filed its draft prospectus with the Stock Exchange of Thailand (SET) in April 2020 and it is targeting an IPO deal size of US$1 - 1.5bn.As per the exchange announcement, PTTOR will offer up to 2.7bn primary shares in the IPO, of which 300m will be sold to existing shareholders of PTT. There will be a greenshoe option of 300m shares. PTT will retain 75% stake in PTTOR after the IPO.
Based on PTTOR’s total revenue, the business would look unexciting given that most of its revenue is generated from the oil business. However, segment gross profit breakdown shows that its non-oil business is the one to look out for. The non-oil business includes the network of Amazon Cafes in Thailand and other countries and operates with a much higher gross margin than its main oil segment.
In this note, we will look at PTTOR’s main business segments, how they have performed over the past three years, and share our thoughts on the profit driver.
Underlying
PTT Oil and Retail
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Zhen Zhou Toh
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