UPDATE 4-Thailand's largest IPO braves market, priced near top of range

* Central Retail prices IPO near top end of range
* IPO secured cornerstone investors in mid-January
* Thailand markets face tough outlook with weak economy
* Shares to begin trading on Feb. 20

(Updates, adds valuations, paragraphs 1,8)
By Anshuman Daga and Scott Murdoch
SINGAPORE/HONG KONG, Feb 6 (Reuters) - Thailand's largest
retailer, Central Retail Corp, priced its initial public
offering (IPO) near the top end of an indicative range, in a
deal worth about $2.5 billion, making it the country's largest
IPO ever.
With the IPO priced on Thursday at 42 baht ($1.36) a share,
the company said it is raising 78.1 billion baht after fully
exercising its overallotment option amid markets weakened by
worries that a virus outbreak could dampen world economic
growth.
Citing sources, Reuters reported on Wednesday that the
company had priced the IPO at 42 baht per share.
"In these volatile markets, the launch of Central Retail's
IPO shows the strength of its business and confidence from
investors who look for equities that have strong fundamentals
and industry leadership," said Anuwat Ruamsuke, managing
director of Phatra Securities, a financial adviser for the deal.
Thailand's stocks index .SETI has fallen about 4% and the
baht has also weakened since mid-January, when the deal's
indicative price band was set, as the virus outbreak has
escalated and its economic impact has been felt globally.
The death toll from the epidemic has surpassed 500 in China,
mostly in and around the locked-down central city of Wuhan where
the virus emerged late last year. Central Retail, controlled by the billionaire Chirathivat
family, set the indicative price band at 40 to 43 baht, and
secured cornerstone investors such as Capital Research
Management and Singapore sovereign wealth fund GIC. L4N29M22Y
At 42 baht, the firm has a trailing price-to-earnings
multiple of 30 times against the sector average of 33.9 times,
Refinitiv Eikon data showed. It would have a market value of 260
billion baht ($8.37 billion), making it the 15th largest company
on the Thai bourse.
The IPO, first announced in July, comes after Thailand took
the top spot in Southeast Asia in 2019 with $4 billion in
fundraisings, according to Refinitiv data. A slew of large
issues is in the pipeline for this year. "The negative sentiments surrounding markets and weakening
Thai economy are short-term bearish concerns," said Oshadhi
Kumarasiri, an equity analyst at LightStream Research, who
writes on the platform Smartkarma.
"Still, the quality of Central Retail's asset base justifies
the IPO price."
As part of its listing plans, Central Retail is offering a
share swap worth up to 34.1 billion baht to shareholders of its
retail unit Robinson Pcl ROBINS.BK , and will delist the firm.
Central Retail's shares will start trading on Feb. 20.
Morgan Stanley, Credit Suisse and UBS are the main
international banks working on the IPO.
($1 = 31.0600 baht)

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Mainland China reports 65 new coronavirus deaths on Feb. 4,
total at 490 billionaire family plans to take Central Retail Corp public
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>