Gulf Development Plc (Gulf) commenced trading on the Stock Exchange of Thailand (SET) on Thursday following its recent merger with Intouch Holdings Plc, the parent company of Advanced Info Service (AIS), and Gulf Energy Development Plc, one of Thailand’s largest power companies by market capitalization.

The merger, finalized on March 31, has positioned Gulf for promising business prospects, bolstered by an improved credit rating and ongoing financial support over the next five years.

On its debut trading day, Gulf's share price closed at 48.75 baht, with active trading generating a value of 4.43 billion baht.

The corporate credit rating agency Tris Rating Co has upgraded Gulf's corporate credit rating from "A+" to "AA-" and its senior unsecured debentures from "A" to "AA-", maintaining a "stable" outlook.

This upgrade has been attributed to Gulf's significant role in the domestic power sector and its consistent cash flow.

Yupapin Wangviwat, Gulf's deputy chief executive, emphasized that the upgraded rating would benefit the company's cash flow and liquidity.

The firm has outlined an investment plan of 100 billion baht to be executed between 2025 and 2029, aimed at synergizing energy and telecommunications services, as well as developing a new data centre facility.

Gulf is set to launch its first data centre by mid-2023 and plans to expand this business segment, anticipating a power demand increase to 200 megawatts over the next two to three years.

In 2025, the company intends to allocate 20 billion baht to support various development initiatives, including the installation of rooftop solar panels, the establishment of solar farms, and the creation of gas-fired power plants.

On the day of its initial offering, no price limits were imposed on Gulf shares to allow for market-driven pricing, with the market capitalization calculated based on the closing price.

During the afternoon trading session, Gulf's shares were valued at 49.25 baht with a trading volume of 2.32 billion baht.

The launch occurs amid challenging circumstances for Southeast Asia's second-largest economy, coinciding with the announcement of substantial tariffs by the United States impacting global markets, and following a recent earthquake in Myanmar that has affected infrastructure and tourism in Thailand.

As a holding company, Gulf operates across three primary segments: energy, infrastructure and utilities, and digital business.

According to industry analysis, Gulf's robust cash reserves, approximated at 35 billion baht, position the company favorably for further investments and expansions within the region's infrastructure and utility sectors.

Expected earnings growth of approximately 20% is projected through to the end of 2027, attributed to ongoing power projects, infrastructure developments, and the data centre venture.

Kasikorn Securities indicated a solid growth trajectory for Gulf, driven by several power projects in the pipeline and additional revenue streams anticipated from 2025 to 2027. The firm estimates a compound annual growth rate of 15% in earnings over that period.

Asia Plus Securities highlights that Gulf's merged profit structure will see 60% derived from energy and infrastructure, while the remaining income will come from digital pursuits.

The merger is also expected to enhance operational efficiency and create long-term synergies within the company.

AIS chief executive Somchai Lertsutiwong noted that the merger simplifies policy management relating to shareholding structures and offers greater operational flexibility.