Investors Skeptical of AoT Investment in New Suvarnabhumi Airport

February 13, 2004

Investors Skeptical of AoT Investment in New Airport 
Bangkok Post, Thailand


Hundreds yesterday turned out to an investor
presentation by Airports of Thailand (AoT) on its
strategic plans after it lists on the Stock Exchange
of Thailand next month, the first listing by a state
enterprise this year.

But many attending the briefing at the Queen Sirikit
National Convention Centre expressed concern about
AoT's investments in the new Suvarnabhumi Airport and
when it expects to break even. The total investment by
the AoT is projected at some 86 billion baht.

But AoT executives and financial advisers said the
company expected to reap handsome profits once the new
airport opens next year.

Plans to increase passenger service charges in 2005
from 50 baht to 100 baht for domestic flights and 500
baht to 700 baht for international flights will also
boost revenues and profits.

AoT reported 2003 profits of 6.69 billion baht, down
from profits of 7.45 billion baht the previous year
and attributed to rising employee expenses, declines
in airline travel due to the Sars outbreak and higher
tax charges.

Supatra Meesawan, an AoT senior executive
vice-president, said the opening of the new
Suvarnabhumi airport would double the company's
revenues.

She expressed confidence that the company's long-term
earnings and revenue growth were solid, making the
share offering a good choice for investors.

The AoT prospectus, however, notes 27 different risk
factors potentially affecting the company's
operations, including terrorist events and other
factors affecting tourism trends.

The public float for the AoT offering will be made
from Feb 26 to March 1 through Bangkok Bank, Krung
Thai Bank, Kasikornbank and Thai Military Bank.

Manpong Sena-narong, a vice-president at Phatra
Securities, the financial adviser for the offering,
said pricing would be between 37 to 42 baht per share,
with a formal announcement made on March 2 after
placement with institutional investors.

Shares would begin trade on the Stock Exchange of
Thailand on Mar 18.

Retail investors may reserve from 500 to 20,000
shares. Payment will be made at 42 baht per share,
with refunds offered if the final price is set lower.


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