The public offering of investment units in the Vayupak Fund 1 by the Ministry of Finance in Thailand was officially closed on September 20.
According to a report by the Nation Thailand on September 17, citing Lawaron Sangsanit, permanent secretary of the Finance Ministry, the public offering was “met with a lively response”.
The Vayupak Fund was open for retail investors to purchase units from September 16-20 at a price of 10 baht per unit, with a minimum investment of 10,000 baht (US$300). The fund is being allocated using a small-lot-first mechanism.
“We are allowing retail investors to subscribe for four days… Institutional investors can subscribe from September 18-20, and once the period ends, the committee will review the situation again on September 21,” Lawaron says in the report.
The Vayupak Fund 1 is offering Category A units to the public at 10 baht per unit, with a total estimated value of 100 billion to 150 billion baht.
Investors are divided into two main groups. The first group comprises domestic retail investors. They must be Thai nationals residing in the country and be at least 20 years old. The initial allocation for this group is set at 30 billion baht to 50 billion baht.
The second group includes institutional investors and specific legal entities, such as commercial banks, life and non-life insurance companies, social-security funds, provident funds, and government pension funds. The initial allocation for this group is set at 100 billion baht to 120 billion baht.
The funds raised for the Vayupak 1 fund will be mainly used to invest in local stocks. Investors who subscribe to the fund will be able to enjoy a minimum return of 3% a year, and a maximum return of up to 9% a year, subject to a lock-in period of ten years.
