According to the Stock Exchange of Thailand, True Corporation Public Company Limited (SET: TRUE) has reported a share transaction involving a major shareholder selling a portion of shares from the CP Group to investors. Market analysts in the capital market sector assessed that the CP Group selling some shares in TRUE is part of normal portfolio management for major shareholders, rather than a negative signal for the business outlook.
The report states that the first lot of TRUE shares, approximately 4.49%, has been sold to UBS AG, with an additional 0.22% sold to two domestic investors. The remaining portion, not exceeding 5.3%, will be sold to UBS as soon as feasible. Analysts believe that the entry of a global financial institution underscores international investors’ interest in Thai big-cap stocks, especially in the digital infrastructure sector.
From a business fundamentals perspective, analysts continue to have a positive view of TRUE following the 2023 merger, which has stabilized competition in the Thai telecommunications market, reduced price wars, and allowed the company to manage network costs and expenses more efficiently. This has resulted in a continuous improvement in profit and cash flow prospects.
Additionally, while the CP Group has reduced its shareholding, it remains the major shareholder, holding 19.72% of TRUE, with no changes to the executive team or the company’s strategic direction.
Analysts conclude that the deal increases liquidity and free float for TRUE, which may help expand the investor base in the future. Key factors affecting share value remain the ability to generate EBITDA, cost management, and the growth of digital services, rather than short-term shareholder structure changes. Overall, the market regards this deal as a “portfolio rebalancing” by the major shareholder, supported by solid business fundamentals and prospects for continued growth.
