The Stock Exchange of Thailand (SET) expects a surge in the number of new listings in the second half, including the first IPO launched by a company from the Greater Mekong Subregion.
Normally companies planning to list on the bourse will prepare their previous annual balance sheets and first-quarter balance sheet for completion in the second quarter each year, resulting in listings in the third or fourth quarters, said SET senior executive vice-president Manpong Senanarong.
Companies planning to list on the SET have to prepare investment information, financial balance sheets and accounting standards, he said.
Market sentiment is another factor influencing companies' decision to launch their IPOs, as there have been cases where firms have decided to delay their listings due to fragile market sentiment, Mr Manpong said.
Market sentiment in Thailand's stock market during the first half signalled an improvement after the MSCI Emerging Markets index's increased weighting of Thai equities.
But investor confidence is still being dented by slower global economic growth as the Sino-US trade dispute continues. Domestic political uncertainty has added to investor woes, due to the prolonged process of setting up a new government in the post-election period.
The amount of funds raised through IPOs from the start of the year until the end of May was US$249 million, second in Asean behind Malaysia's $293 million, according to the SET.
The SET, however, remains in the top position among Asean stock exchanges for total IPO value from full-year 2014 to May 2019 at $15.16 billion, followed by Singapore ($8.2 billion) and Malaysia ($5 billion).
Vicha Tomana, managing director of Phillip Securities Thailand, said Thailand's IPO market is poised to be more active in the second half as market sentiment is supported by the new government, with the economic agenda expected to remain unchanged from the military-led government's policies.
There are many large companies planning to list on the SET in the second half, Mr Vicha said, and the Securities and Exchange Commission has already approved IPO filings of more than 10 companies.
State-owned energy giant PTT is planning an IPO of its retail fuel business, while Thai billionaire Charoen Sirivadhanabhakdi is considering an IPO of a domestic property business that could raise at least $1.5 billion, according to Bloomberg.
An IPO rally in Thailand's bourse is forthcoming because market sentiment remains positive, Mr Vicha said.
"If a company has already prepared information with strong financial fundamentals and a good outlook, it can be listed on the bourse at any time," he said.
