Esso files IPO application

Business News - Friday December 14, 2007

ENERGY

Esso files IPO application

Esso (Thailand) Plc has filed plans for an initial public offering to reduce its debt and take advantage of a government tax break for companies listing on the stock market.

Esso will offer new shares, while the Finance Ministry, the refiner's second-biggest shareholder, would sell some of its stake, the company said yesterday in a prospectus filed to the Securities and Exchange Commission.

The filing did not specify the number of shares, pricing or other details.

Exxon Mobil, the world's largest oil company, owns 86.8% of Esso (Thailand) and the Finance Ministry holds 12.5%, according to yesterday's filing.

Companies that submit IPO filings by the end of this year will be eligible for a reduction in their corporate tax rate to 25% from 30% if they list on the Stock Exchange of Thailand, and to 20% if they list on the smaller market for Alternative Investment.

Esso said that its profit in the first nine months of 2007 rose 68% year-on-year to 3.53 billion baht. Its debt stood at 30.9 billion baht as of Sept 30.

The company operates the country's second-largest refinery in Chon Buri, with a capacity of 170,000 barrels of crude oil a day.

Esso plans to sell 25% of its total shares in order to meet government listing requirements. The shares may start trading in April next year, Energy Ministry officials said. BLOOMBERG NEWS

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