Thailand: Egat's household customers may be able to buy company's IPO shares.

(From Thai Press Reports)

Section: Corporate News - Egat Plc's 14 million household customers are tipped to be the first to subscribe to the electricity agency's shares to be floated next month, Energy Minister Viset Choopiban said on Wednesday, The Nation reports.

Egat's financial advisers have recommended that users be split into two groups - home-owners and renters - who can reserve shares through lucky draws. The remaining shares will then be made available to the general public.

"Details will be concluded this week, and the Cabinet will consider the proposal next week," he said.

Viset also insisted that although the Cabinet resolution for Egat's IPO must be revised to allow the special sale, its initial public offering and listing would still be held on November 30, as scheduled.

The move is viewed as a way to appease consumers who might have to bear higher electricity costs if global fuel costs spike again. For the four months from this month to January, the variable electric rate was lifted by only 10 satang, instead of the 26 satang that fuel costs actually increased, thanks to restraint by PTT Plc and natural-gas producers. The decision not to pass cost inflation on to their customers prompted many in the energy industry to call on the government to delay the IPO until its policy for future power pricing becomes clearer.

PTT's Bt6.5-billion subsidy was highlighted as the main factor for the continued fall in the prices of PTT and other energy stocks. PTT ended at Bt222, down from the Bt230 closing on October 18 when the subsidy was announced.