BANGKOK, Thailand – Thailand’s capital market is showing signs of renewed confidence, with several major companies that had previously considered listing overseas now returning to discussions with the Stock Exchange of Thailand (SET) about listing domestically.
SET Chairman Kitipong Urapeepatanapong said improvements to SET rules and a clearer investment environment had prompted large companies to reconsider Thailand as a listing destination.
Companies reportedly in discussions with the SET include LINE MAN, ThaiBev, CJ More and a REIT under the Central Group, he said, describing the renewed interest as a positive sign for the Thai capital market.
Kitipong also said continued efforts to educate family businesses and improve corporate governance could help reverse the record decline in initial public offerings (IPOs) within the next one to two years. However, he stressed that the number of new listings should not be the main measure of success. Bringing large numbers of companies to the market without sufficient quality could create problems such as artificial share-price movements, potentially damaging retail investors.
He said selecting companies with sound businesses and standards was more important than pursuing high listing numbers. The SET currently closely monitors first-day trading and can take immediate action when irregularities or violations are detected. To attract more family businesses to the capital market, the SET is also preparing to establish a dedicated unit working with relevant agencies to proactively advise family-owned companies considering a listing.
Kitipong said seminars for family businesses held over the past three years had not yet produced new listings, partly because of weak market conditions during that period. With investment conditions now becoming more active and family businesses gaining greater access to knowledge about capital markets and governance, he expects the next generation of family business owners to reconsider bringing their companies to the stock market.
