Total market capitalisation for this year's IPOs has reached an all-time high of 420 billion baht as the Stock Exchange of Thailand (SET) celebrates its 42nd anniversary.
The record comes from 42 IPO deals this year, said SET executive vice-president Amnouy Jiramahapoka. The figure is higher than the average IPO market capitalisation of 350 billion baht from 30-40 deals, said Mr Amnouy.
He said the growth of IPO deals resulted from the SET's effort to educate provincial companies on the pros and cons of being listed by partnering with law firms, accounting firms, and financial advisers over the past 3-4 years.
"Being listed [on the bourse] is not strictly about raising funds anymore. Companies come to raise funds from the capital market with the intention to turn family businesses into professional ones," said Mr Amnouy.
This year also marks the first time a foreign real estate investment trust can be listed on the bourse, he said.
The SET plans to promote investing in high-quality listed companies to institutional investors, consisting of domestic institutional investors, brokerage firms, and foreign investors, said Mr Amnouy.
These investors comprise 50% of the total, equalling the portion of retail investors for the first time, he said.
"This is in accordance with the SET's strategy to expand the role of institutional investors. In addition, foreign investors played a larger role in Thailand's capital market over the past two years as they received 10% returns from the SET index and another 10% from the stronger baht," said SET senior executive vice-president Pakorn Peetathawatchai.
SET president Kesara Manchusree said the SET's market capitalisation of 17.5 trillion baht reflects the potential of Thailand's capital market.
"Market size will keep growing on two factors -- new IPOs and larger market capitalisation of the existing listed companies," said Mrs Kesara.
She said there will be an estimated 30 IPOs next year, driving up the bourse's total IPO market capitalisation to around 280 billion baht, or 550 billion baht if the secondary offerings are included.
Thailand's infrastructure fund is likely to be listed in the first half of 2018, with an estimated 30-40 billion baht in funds raised, said Mrs Kesara.
