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SET gears up for a more vigorous IPO market

Jul 19. 2019
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By The Nation

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The Stock Exchange of Thailand (SET) expects a more active market for initial public offerings (IPO) in the second half of the year, thanks to more companies wanting to float their shares and interest from foreign corporations to list in Bangkok.

Manpong Senanarong, senior executive vice president and head of the exchange’s issuer marketing division, said about a dozen companies are readying their shares for public offerings on the SET, with some having have just submitted their filing reports to the Securities and Exchange Commission (SEC). The procedure for most of them began in May and the applications should be nearing the approval stage now. The new entrants would help contribute to a more vigorous IPO market compared with that seen in the first half of the year.

“Apart from the new local companies, we are also expecting more foreign corporations to enter the SET,” he said. “Usually foreign companies will consider market conditions before investing in the local stock market, and currently there are no negative factors in Thailand. The SET and the SEC have already had discussions with several foreign companies to help them get ready in terms of data preparation and regulatory compliance. However, it usually takes longer for foreign companies to be listed on the SET, compared with their Thai counterparts, since local companies are already familiar with the rules and regulations of the SET and the SEC.”

Somphop Sakphanphanom, chairman of Asset Pro Management Co., Ltd. (APM), said that another factor helping to boost the IPO market is the government’s support for small and medium-sized enterprises - especially those in the transport, energy, construction and food and beverage sectors. He said that by the end of the year the company will bring in more Cambodian companies from the Phnom Penh Special Economic Zone to the SET under the dual-listing scheme.

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