MK Restaurants Seeks to Raise Up to $292 Million in Thai IPO

MK Restaurants Group Pcl (MKG), a Thai restaurant-chain operator, plans to raise as much as 9.1 billion baht ($292 million) in the nation’s second-biggest initial public offering this year.

MK will sell 185.9 million new shares to local investors at 45 baht to 49 baht apiece, according to two people with knowledge of the deal who asked not to be identified. The IPO would be Thailand’s largest since BTS Group Holdings Pcl (BTS) raised 62.5 billion in the sale of its infrastructure fund in April, according to data compiled by Bloomberg.

Thai companies including CK Power Ltd. (CKP) have revived share sales that were postponed as global equity markets tumbled. Overseas investors have bought a net 279 million baht of Thai stocks so far this month after net sales of 55 billion baht in June, the biggest monthly outflow since May 2010, according to stock exchange data compiled by Bloomberg.

Thailand’s SET Index (SET) has gained 7 percent from this year’s low on June 24. The benchmark index is still down 11 percent since May 21, after Federal Reserve Chairman Ben S. Bernanke said the central bank may scale back stimulus measures.

MK, which operated 460 outlets in Thailand as of March 31 and has ventures in Japan, Singapore and Vietnam, will use the IPO proceeds to build a food-processing plant, corporate headquarters and additional outlets, according to a June 12 regulatory filing.

Chief Executive Officer Rit Thirakomen wasn’t immediately available for comment when called at his office in Bangkok today. MK hired Asia Plus Securities Pcl (ASP), Phatra Securities Co. and Bualuang Securities Pcl to help sell the shares.

MK’s net income fell to 486 million baht in the three months ended March, from 554 million baht a year earlier, according to its Securities and Exchange Commission filing.

CK Power, a unit of Bangkok-based Ch. Karnchang Pcl (CK), plans to raise 2.86 billion baht in its IPO, it said on July 8.

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