Gulf Energy Development Pcl’s
billionaire founder Sarath Ratanavadi plans 150 billion baht ($4.6
billion) of investment in power plants over the next four years after
the company’s listing this month.
The
initial public offering’s proceeds will help fund some of the outlay,
with the rest coming from loans, Sarath, the company’s chief executive
officer, said in an interview in his Bangkok office. His net worth is
about $2.2 billion based on Gulf Energy’s $733 million IPO, according to
the Bloomberg Billionaires Index.
"Gulf
Energy will have stronger financial leverage for more expansion
following the IPO, as new power plants require a large amount of money,”
Sarath said on Friday. “The company is looking at a number of
opportunities in Thailand and neighboring countries.”
The firm is studying projects in such countries as Myanmar,
Laos and Vietnam, where faster economic growth will boost demand for
electricity, he said. Southeast Asian nations are enjoying an economic
boom, spurred by a global recovery that’s buoying exports.
Sarath
said the investment plan will focus on gas-fired electricity and
probably cover acquisitions of existing power plants and green-field
projects. Gulf Energy generates almost all of its power from natural gas
and will double output to 4,647 megawatts by 2024, according to a
filing.
Coal faces regulatory curbs due to pollution and returns on
renewable energy are comparatively low, Sarath said. Such risks
underscore the need for measured expansion, he added.
The IPO is
the largest first-time share sale in Thailand since Jasmine Broadband
Internet Infrastructure Fund priced a $1.7 billion offering in 2015,
according to data compiled by Bloomberg. It adds to the $2.5 billion of
first-time share sales in the country this year, up from $1.5 billion
during the same period in 2016, the data show.
Thailand is set for a “strong recovery” after years of slow
economic growth, Sarath said, adding that industrial customers have
boosted demand for electricity, steam and other supplies.
Monday, December 04, 2017
