Buoyant IPO trend continues on both SET and MAI
More and more companies are interested in listing on the local bourse after the overwhelming response from previous initial public offerings this year, Securities and Exchange Commission deputy secretary-general Chalee Chantanayingyong said yesterday.
In all eight listings so far this year |on the Stock Exchange of Thailand and the Market for Alternative Investment, debut prices were higher than the com-panies’ IPO subscription prices, a trend that has encouraged more businesses |to turn to raising funds via the IPO process.
Three of this year’s listings were on the SET, with the remainder on the second-tier MAI.
IPO prices reflect the actual value of companies, while the bright investment sentiment is another factor influencing companies to mobilise funds through the bourse, he said.
He cited buffet-restaurant operator Hot Pot as a good example of this year’s impressive overall IPO performance, the stock making its MAI debut on September 18 at Bt3.90 and peaking at Bt4 before closing at Bt3.80 – well above the IPO price of Bt2.80.
“The overwhelming prices following IPOs show that even though the company owners will lose [outright] ownership, they get a price that is higher than the par value and which also attracts larger investors to buy the company’s shares,” he added.
Chalee said more than 10 companies are interested in launching IPOs, over and above those that have already submitted filings.
LIVELY YEAR
Moreover, businesses are interested in entering the “one company one province” project, which has convinced the SEC that this year’s IPO flotation scene will be livelier than last year’s.
In a related matter, the SEC is not investigating companies showing evidence of “overheating” prices, he said, as the watchdog is confident there is sufficient transparency, besides which it works with the SET and IPO financial advisers throughout the listing process to ensure that businesses are well prepared to enter the stock market.
“We educate companies that plan to |list on the stock market to focus more |on transparency and long-term listing rather than [merely] on the stock prices,” he said.
Meanwhile, Chanit Charnchainarong, manager of the MAI, said the second-tier bourse welcomed the latest IPO from Project Planning Services, a construction management services provider.
The company is floating 120 million new shares tomorrow.
