ThaiBev's brewery unit, Chinese battery supplier brave Asia's IPO market

ThaiBev is attempting to sell shares in the unit after having shelved plans twice due to the Covid-19 pandemic. PHOTO: BLOOMBERG

HONG KONG (BLOOMBERG) - The brewery unit of Thai Beverage started gauging demand for share sales in Singapore, while a Chinese supplier of a material used in batteries did the same for Hong Kong, testing appetite in a tough market for listings globally.

ThaiBev's BeerCo initial public offering (IPO) could raise between US$800 million (S$1.12 billion) and US$1 billion through the Singapore IPO, sources familiar with the matter said last month. At the top of that range, it would be the biggest offering in the country since 2017, according to data compiled by Bloomberg.

In Hong Kong, Tianqi Lithium Corp also began pre-marketing its shares for an offering that could raise between US$1 billion and US$1.2 billion. It could potentially be the largest listing in the Asian financial hub since August last year, as large-size deals vanished this year. The company already trades in Shenzhen's exchange, where the stock is up 11 per cent year to date.

Both companies and their shareholders are aiming to tap investors in a market that has not been this bad for nearly two decades, with proceeds from global IPOs and follow-on share sales down about 70 per cent from a year ago. Surging inflation, aggressive central bank interest rate hikes and the risk of a global recession have been eroding sentiment.

ThaiBev is attempting to sell shares in the unit after having shelved plans twice due to the Covid-19 pandemic. It is seeking to float about 20 per cent of BeerCo, according to a filing to the Singapore exchange.

The two companies are not alone in their hunt for investor's attention as the week starts.

CSM Corporatama, a provider of car rental services, also started gauging demand for an IPO in Jakarta that could raise up to US$250 million, according to International Financing Review.

TI Cloud, a Chinese cloud-native customer solutions provider, started taking orders on Monday for a Hong Kong offering that aims to raise up to US$77 million.

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