The Stock Exchange of Thailand (SET) missed its target of increased market capitalisation from initial public offerings (IPOs) by about 100 billion baht in 2018, mainly due to depressed market sentiment.
The bourse had wanted to draw market capitalisation from IPOs of 250-300 billion baht this year, excluding the Thailand Future Fund.
In the end, several firms decided to delay IPO launches until the second half of 2019 amid external and domestic uncertainties.
As of Dec 26, the SET index had a return of -11.2%, a price-to-earnings ratio of 14 and total market cap of 15 trillion baht.
Of the 21 companies that launched IPOs this year, 12 listed on the Market for Alternative Investment (MAI) and nine on the SET.
Total fund-raising was about 180 billion baht.
The number of IPOs this year was down by half from last year's tally of 42 IPOs worth more than 200 billion baht combined.
Of the newly listed firms in 2018, five saw their share price drop below the IPO price during the first trading day and 14 traded below their IPO price as of Dec 26.
According to the SET, 20 IPOs are in the pipeline, of which 12 plan to list on the MAI and eight on the SET.
Investor have lost confidence in medium- and long-term investment, including the IPO market, as a result of several external and domestic uncertainties, said Sompop Sakpanpanom, chief executive of Asset Pro Management (APM).
"I think the market regulator and other related companies involved with the fund-raising process should cooperate to organise events to boost investor confidence for next year, otherwise the IPO market will continue to be inactive and many companies will continue delaying their plans to list on the bourse," Mr Sompop said.
Despite this year's lukewarm IPO fund-raising and a tepid IPO market expected during 2019's first half, market sentiment is expected to improve in the second half as a new government settles in and global uncertainties subside, he said.
Mr Sompop said APM plans to bring two IPOs to list on the bourse in next year's first quarter, followed by IPO listings of two or three companies in the second quarter and another listing in the third quarter.
"Investors should take this opportunity to pick good stocks offering high dividends because there are many stocks offering a dividend payment of more than 4-5%," he said. "When market sentiment becomes positive again, they [investors] can exit with capital gains from trading."
Vicha Tomana, head of Phillips Securities Thailand, offered a different view, saying Thailand's IPO market in the second half of 2019 is expected to ebb amid a loss of confidence and growing uncertainty.
Rising interest rates, geopolitical conflicts, the Sino-US trade row and domestic political uncertainty are keeping a lid on investor confidence, he said.
