The initial share allotment of Thai Life Insurance Public Company Limited (SET: TLI) offered through Financial Syrus Securities (FSS) was fully subscribed within an hour on its first offering day on June 29, 2022, for what it would be the largest IPO this year in the Thai stock market.
Fitch Ratings stated that Thai Life Insurance Public Company Limited (TLI, Insurer Financial Strength (IFS): A-/Stable) will strengthen its capital position and retain its ‘Favourable’ company profile after completing its IPOs by end-July 2022. The firm said that it believed the proceeds from the newly issued shares should allow the company to sustain its competitive and market position as well as provide a further buffer against any downside risk.
TLI priced its initial offering price at THB16.00 per share with an offering not exceeding 37 billion baht including 161 million shares of greenshoe options.
It is expected to enter the SET50 Index in a fast-track measure due to its large market capitalization.
Fitch Ratings also noted that it believed the IPO would benefit the overall local life insurance industry because of higher accountability and transparency, as TLI is the second-largest life insurer in the country (2021:15% share of total premium written). The insurer will also be the second listed life insurer after the smaller insurer, Bangkok Life Assurance PCL.
Fitch Ratings expected the IPO to encourage more life insurers to list on the local exchange over medium term, and to attract more foreign investors, resulting in an inflow of foreign capital into the market