Thai IPO pipeline faces difficulties, exchange president says

[BANGKOK] Thailand’s initial public offering pipeline continues to face challenges, even as signs of renewed investor interest have started to emerge, according to Stock Exchange of Thailand President Asadej Kongsiri.

“The pipeline has been a difficult situation for Thailand,” Asadej said in a Bloomberg TV interview, adding that IPOs typically take time to develop, sometimes as long as two to three years. He said one of the main factors in issuers’ decision-making has been valuations.

Asadej said there had been significant interest, and the focus now is on whether that can turn into concrete action. “Now we’re looking to see them converting into real action, into real filings, based on hopefully a higher valuation of the overall market today,” he said.

Thailand’s main stock benchmark is up 16 per cent this year, buoyed by Prime Minister Anutin Charnvirakul’s decisive election win, which has bolstered expectations of a stable government and policy continuity. That’s raised hopes that improved sentiment could help unlock more listings. Even so, Asadej’s comments suggest firms may be holding out for better conditions before moving forward.

The SET plans to introduce “mini-gold” futures next month, offering one-ounce contracts alongside the existing 10-ounce gold online futures. 

“We thought of introducing the new contract because there is demand for it, so that people can come into a trusted marketplace and participate in the volatility of the gold price,” Asadej said. BLOOMBERG