Shares in budget carrier Nok Airlines Pcl jumped 12 percent to 29 baht versus its IPO price of 26 baht on its market debut, outperforming other airline shares, thanks to its attractive valuation and growth prospect.
Nok Airlines raised 4.9 billion baht ($159 million) in an initial public offering last week to fund its fleet expansion.
Market players appeared favouring Nok Air over Asia Aviation Pcl, a holding company that owns 51 percent of budget carrier Thai AirAsia.
Shares in Asia Aviation fell 1.8 percent. Shares in national carrier Thai Airways International Pcl, which owns 39.2 percent in Nok Airlines, lost 2.9 percent.
"It's likely that selling pressure will be on Thai Airways shares, with money shifting to Nok Airlines. Thai Airways earnings for the second quarter may be a bit weak due to a low season and foreign exchange loss," said broker KGI Securities.
Phillip Securities advised investors to add Nok Airlines to their short-term portfolios.
"In addition to strong earnings growth profile, IPO price based on price-to-earnings of 12 times represents a big discount to its peer Asia Aviation, which trades at price-to-earnings of 17.5 times," the broker said.
(Reporting by Viparat Jantraprap in Bangkok; Editing by Jijo Jacob)
$1 = 30.81 baht