Enthusiastically Welcomed by Investors, DIF Strikes Final Unit Price at Maximum Preliminary Offering Price Range of THB 13. Offering of New Units Draw Oversubscription by Investors

Stocks and Financial Services Press Releases Tuesday May 15, 2018 10:44
Bangkok--15 May--MT Multimedia

DIF has set the final offering price of its new units, to be issued to finance the third additional investment in the telecommunications infrastructure assets, at THB 13.90 each, the top range of the preliminary offering price, as the units were oversubscribed by the enthusiastic investors, including the existing unitholders and the general public, which reflected their confidence in the fund's prospects, with its larger asset portfolio, greater geographical coverage and additional assets available for benefit seeking from leasing out to the telecommunications operator to immediately generate more revenue, and hence it expects to increase dividend per unit (from July 1, 2018 to June 30, 2019) to be at least THB 1.04 per unit. The new units allocation result will be announced on May 16, 2018 and could be checked at www.settrade.com, the office of the DIF fund management company (SCBAM), or the 3 Joint Lead Underwriters.

Miss Veena Lertnimitr, Executive Vice President of Primary Distribution Division of the Siam Commercial Bank PLC, as the Sole Financial Advisor, the Sole Global Coordinator, the Joint Bookrunners and the Joint Lead Underwriters for the third additional investment of Digital Telecommunications Infrastructure Fund ("DIF"), revealed that, during the subscription period for new units between May 2-11, 2018, for which the preliminary offering price range was set at THB 13.60 to THB 13.90 per unit. The new units were oversubscribed by investors, and that, following bookbuilding process with the institutional investors, the final offering price was at THB 13.90 per unit, the top range of preliminary offering price. She noted that the proceeds will be invest in additional telecommunications infrastructure assets no.3 with total value of approximately THB 55,236 million, comprises of value of investment units issued and offered for sale of approximately THB 53,236 million and borrowing from the financial institutions of THB 2,000 million.

Mr. Ekkapob Makeguljai, Executive Vice President and Team Leader, Market Sales and Product Solutions Team, Financial and Capital Market Business Division, Krung Thai Bank PLC, as the Joint Bookrunners and the Joint Lead Underwriters, commented that the new units offering was warmly welcomed by both existing unitholders and general public as the subscription amount was higher than expected, which led to DIF's achievement in meeting its offering target. For new units allocation result that will be announced on May 16, 2018, the subscribers can check the allocation results at www.settrade.com, the office of the DIF fund management company (SCBAM), or the 3 Joint Lead Underwriters namely Siam Commercial Bank PLC, Krung Thai Bank PLC and Bangkok Bank PLC (working hours only).

Mr. Prasert Deejongkit, Senior Vice President and Manager, Bangkok Bank PLC, the Joint Bookrunners and the Joint Lead Underwriters, added that the oversubscription by all groups of investor resulted from the investors' confidence in DIF's capability and strongly historical performances, with constantly positive distribution per unit (DPU) between 2014 and 2017, which led to the fund's conviction that, after the third additional investment in telecommunications infrastructure assets, the revenue, and hence the return to unitholders, will become higher.

Mr. Smith Banomyong, the Chief Executive Officer of SCB Asset Management Co. Ltd (SCBAM) as the management company of DIF, thanked existing unitholders and new investors for their overwhelming demand to subscribe new units, in which reflected investors' confidence in the fund's prospects, with its larger asset portfolio after this additional investment, and hence it can benefit unitholders from receiving additional return. He also expected that, after completion of the new units offering process, there will be strong demand from investors after the new units are trade on the Stock Exchange of Thailand, as DIF is going to invest in additional telecommunications infrastructure assets that could be readily available for benefit seeking by leasing out to the telecommunications operator to immediately generate revenue for DIF. After the third additional investment, DIF will have enlarged asset portfolio composing of ownership and rights to net revenue of 15,271 telecommunication towers, ownership, long-term leasehold rights and rights to net revenues of FOC of approximately 2.6 million core kilometres, and ownership in the upcountry broadband system totalling 1.2 million ports, in which the combined asset value will reach approx. THB 175,042 million.

The investment will also allow DIF to offer several unique advantages: i) DIF's assets will comprise a large portfolio of assets that cover all areas throughout Thailand; ii) DIF's estimated distribution per unit (DPU) (July 1, 2018 to June 30, 2019) to be at least THB 1.04 (compared to THB 0.98 as recorded for January to December 2017); iii) the weighted average maturity of assets' lease term will longer to approx. 20 years, resulting in revenue recognition under long-term lease agreements, which will be the fundamental for DIF to provide long-term returns to its unitholders; iv) DIF maintains a great relationship with True Group, a major telecommunications operator and its major operator; and v) DIF is in a great position to benefit from the growth trend of the telecommunications industry and the Thai economy which expected to see increasing data usage and access to smartphones, the internet and broadband systems, as well as driving Thailand to become a more advanced digital society through demand from new operators that may become the fund's opportunity to receive higher return.

"DIF has performed strongly since its inception, as reflected from its continuously increase in the net asset value (NAV) of DIF. The NAV of DIF at year end from 2013-2017 stood at 10.0471 12.4161 12.3241 14.6191 and 15.5630 baht per unit, in the respective years. DIF also has ability to pay more dividends consistently every year. Moreover, as DIF's position as Thailand's largest telecommunication infrastructure fund, we trust that DIF offers excellent potential", said Mr. Smith.

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