Bangkok: The Stock Exchange of Thailand (SET) is advancing its strategy to attract new economy businesses to the capital market, with expectations to list 10-15 initial public offerings (IPOs) this year.
According to Thai News Agency, the SET has identified data centers as a key target sector for raising capital. The exchange believes that stricter regulations will enhance quality and sustainability, thereby increasing investor appeal. In collaboration with the Securities and Exchange Commission (SEC) and the Board of Investment (BOI), the SET is working to connect support measures to facilitate this initiative.
Mr. Assadej Kongsiri, Director and President of the SET, emphasized the commitment to assist new economy businesses in accessing the capital market for fundraising purposes. The exchange has adjusted its regulations to better align with the needs of these businesses, aiming to diversify the Thai stock market and offer more options for investors.
Efforts include the enhancement of New Economy criteria to meet the needs of domestic and foreign businesses investing in Thailand. Concurrently, the SEC is streamlining regulations and procedures for IPO approvals to increase efficiency. The BOI is exploring additional support measures for new economy sector companies seeking listing on the SET, with clarity expected this quarter.
Once these components are established, the SET plans to expedite efforts to encourage companies in emerging industries, alongside foreign investors in Thailand, to utilize the Thai capital market for funding. This approach is anticipated to spur growth in new businesses and satisfy investor demands for more emerging industry listings.
Mr. Assadej is optimistic that foreign investment in emerging industries will motivate Thai listed companies and the private sector to invest and connect with these new industries, fostering an investment cycle that supports long-term economic growth in Thailand.
Regarding the data center business, Mr. Assadej highlighted its potential to leverage the capital market for funding. He noted that while details of regulatory approaches are pending, stricter regulations could enhance business quality and sustainability, boosting investor interest.
The initiative to incorporate new economy businesses into the capital market is not expected to yield immediate results in terms of new listings. The IPO preparation process can extend from a year to several years, encompassing data preparation, restructuring, and regulation compliance, alongside timing and market considerations.
Mr. Assadej noted that the SET continues to engage with companies of varying sizes interested in listing, aiming to provide funding opportunities to support their growth.
Looking ahead to 2026, the SET forecasts 10-15 companies will be listed, unlikely to surpass last year's 18. Currently, 3 companies have completed IPOs, 6 have been approved, and another 6 are in the approval process, placing this year's maximum at 15 companies. However, some approved companies may delay IPOs to the following year, contingent on readiness and market conditions.
In the long term, the SET aims to diversify industries in the capital market. Attracting more and larger companies from new industries could position Thailand as a future funding hub for certain sectors.