PUBLISHED : 16 Aug 2024 at 05:52
In a significant move amidst political changes in Thailand, the State Enterprise Policy Office (Sepo) is set to move forward with the sale of units of the Vayupak Fund. This decision reflects a commitment to maintain financial stability and investor confidence.
Tibordee Wattanakul, the director-general of Sepo, confirmed that the cabinet has approved the sale of Vayupak Fund 1, Type A, which will be accessible to the public. The Finance Ministry is determined to execute this plan as outlined.
The cabinet’s original resolution from 2013 established a sale limit for the Vayupak Fund’s investment units at 500 billion baht, with approximately 100-150 billion baht worth of units currently available for sale.
The Finance Ministry anticipates finalizing the sale of the remaining units in the upcoming third quarter, likely around September.
Today, the ministry will convene to determine return rates for unitholders, which will include details about the minimum and maximum return rates.
Implementing a minimum return rate offers investors assurance regarding their guaranteed returns on investment.
The maximum return rate defines the cap that investors can earn, with any surplus profits directed to the Finance Ministry if the fund surpasses this threshold.
A crucial condition ensures the return of the principal amount for investors who hold their investment units for a period of 10 years. Should investors decide to sell their units before this duration, the principal will be valued based on the market price at the time of sale.
Investment units will be sold at a price of 10 baht, utilizing a “small lot first” allocation method that requires a minimum investment of 5,000 baht.
Initially, around 30% of the total units are reserved for retail investors, a proportion deemed appropriate by the fund manager.
The “small lot first” method prioritizes smaller investors by first distributing shares in small lots before larger allocations, promoting fair access in the stock allocation process.
Tibordee highlighted that this is an opportune moment for the Vayupak Fund to invest in the stock market, as current stock prices may not fully reflect their inherent value.
He emphasized that the Thai stock market demonstrates strong fundamentals, with an investment focus on fundamentally robust companies.
Historically, the Finance Ministry has garnered substantial dividends from the Vayupak Fund’s management, averaging around 10 billion baht annually, attributable to its professional management.
There are two variants of the Vayupak Funds: Fund Type A is available for public purchase, carrying a value of 150 billion baht, while Type B consists of units held by the Finance Ministry and state agencies, totaling approximately 350 billion baht.
