Bangkok SkyTrain fund sets $1.4 billion Thai IPO record

BTS Group’s infrastructure fund has raised Bt41.7 billion $1.4 billion from yield-hungry investors, becoming the first initial public offering of an infrastructure fund in Thailand and the biggest IPO ever in the country.

Investors continue to show appetite for defensive vehicles such as real estate investment trusts Reits, and yield was a big part of this deal’s attraction. The fund, which is called BTS Rail Mass Transit Growth Infrastructure Fund BTSGIF, fixed the price at the top of the indicative range for an implied dividend yield of 6%.

Before the launch, the fund secured 20 cornerstone investors, which accounted for about 60% of the...