Stocks in the news (bec, nok? bair?) 17.06.13

Aviation: Nok shares to begin trading on Thursday; Bangkok Airways to float IPO shortly. Airlines are joining the trend of being listed on the Stock Exchange of Thailand in order to raise funds for business expansion. Nok Air, a low-cost carrier, and Bangkok Airways are the latest to pursue this option, while Asia Aviation (AAV), the operator of Thai AirAsia, the biggest low-cost carrier, and Thai Airways International are already listed. The four airlines play leading roles in the domestic and regional markets. AAV was listed in May 12. Nok Air shares will begin trading this Thursday, while Bangkok Airways will float its IPO in the next few months. Nok Air expects to raise Bt3.25b from its IPO of 187.5m shares priced at Bt26 each. Media reports have said Bangkok Airways is expected to float 730m shares for US$320m (Bt9.78b). Last year, AAV raised US$143m from its IPO. (Source: The Nation)

Comment: Thankfully we were able to get some shares in Nok’s IPO, although far less than we had requested for, shares seem to be oversubscribed by 5-6x at the very least.

BEC to set up subsidiary for digital TV to avoid legal conflicts : To avoid legal conflicts under its broadcasting concession with MCOT for operation of the analog Channel 3, Bangkok Entertainment Company (BEC) plans to establish a separate company to bid for two new commercial channels at the upcoming auction for digital TV licences. (Source: The Nation}

Comment: BEC is going to lose massively once the digital tv era comes fully online in thailand, the mini-oligopoly that currently controls the analog tv’s wil no longer be able to command high ad rates.

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