Wednesday, September 30, 2020

SET optimistic of record fundraising through IPOs this year

Aug 10. 2020
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By The Nation

The Stock Exchange of Thailand expects initial public offering (IPO) by companies this year to raise Bt500 billion, as large companies have requested to be listed in the market this year.

Manpong Senanarong, SET senior executive vice president and head of issuer and listing division, said large companies that requested to be listed on the market this year include PTT Oil and Retail Business (OR) and SCG Packaging (SCGP).

"From January 1 to August 7 this year, five companies launched IPOs, accounting for IPO market capitalisation of over Bt303.922 billion, while the fundraising value was approximately Bt71.334 billion," he said.

"Meanwhile, there were approximately 10 companies that were approved to launch IPOs and list on the market."

According to SET data, if the IPO market capitalisation hits Bt500 billion, it will be the highest in history compared to the previous year's Bt383.749 billion, while the data in the past 17 years (from 2003 to 2019) shows IPO market capitalisation had hit the ceiling in 2017 at Bt426.349 billion from 42 listed companies.

Meanwhile, SET president Pakorn Peetathawatchai said the IPO market capitalisation was already higher than the average of Bt250 billion to Bt300 billion per year, adding that the SET has set the target for number of companies listing on the market at 30-40 companies per year.

"We expect more large companies to request IPOs in the rest of this year," he said.

According to a source, SCGP, a subsidiary of SCG, is currently filing its application with the Securities and Exchange Commission, while IPO day will depend on the company and market conditions.

"Investors would be interested in SCGP shares because the integrated packaging business is performing well, while the company has gained positive sentiment from Covid-19 that boosted e-commerce and online businesses' demand for packaging," the news source said.

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