PUBLISHED: 16 Aug 2024 at 05:52
In a decisive action following recent political developments, Thailand’s State Enterprise Policy Office (Sepo) has reaffirmed its commitment to the planned sale of units of the Vayupak Fund. The Finance Ministry anticipates proceeding with the sale, which includes publicly accessible Vayupak Fund 1, Type A units.
Tibordee Wattanakul, the director-general of Sepo, disclosed that the cabinet has already approved this initiative. The original resolution dating back to 2013 authorized the sale of investment units up to a limit of 500 billion baht, with approximately 100-150 billion baht worth currently available for sale.
Expectations are set for the Finance Ministry to initiate the sale of remaining units in the third quarter, likely in September.
Today’s meeting will see the ministry determining return rates for unitholders, delineating both minimum and maximum return conditions.
A defined minimum return rate will offer investors a guaranteed return, while the maximum return rate identifies the highest potential return available to them. Any returns that surpass this maximum will revert to the Finance Ministry.
A critical condition also ensures that investors who retain their units for 10 years will have their principal guaranteed. Should investors decide to sell before this period ends, the principal will be evaluated at the prevailing market price.
Investment units are priced at 10 baht each, adopting a “small lot first” allocation strategy, which necessitates a minimum investment of 5,000 baht.
To bolster retail investor participation, approximately 30% of units will be allocated for them, a proportion deemed sufficient by the fund manager.
The “small lot first” method, commonly utilized in initial public offerings, seeks to balance equity among diverse investor sizes by prioritizing smaller investors in share allocations.
Tibordee emphasized that current stock prices do not accurately reflect true market values, making this an opportune moment for the Vayupak Fund to make stock market investments.
The Thai stock market’s strong fundamentals will guide fund allocations towards fundamentally solid stocks, ensuring prudent investment practices.
Historically, the Finance Ministry has significantly benefited from managing the Vayupak Fund, which has generated approximately 10 billion baht in annual dividends due to its expert management team.
The Vayupak Fund consists of two variants: Fund Type A, available for public purchase with a value of 150 billion baht, and Fund Type B, comprising units held by the Finance Ministry and state agencies, together valued at around 350 billion baht.
