Capital blow

As the pandemic enters its second year, Thai businesses are increasingly turning to financial markets as a source of funding at a time when investor sentiment is unreliable.

Thailand’s initial public offering (IPO) market is expected to remain active over the next few years, taking a prominent place in Asean, spurred by a slow economic recovery that is forcing unlisted companies with low liquidity to seek a working capital.

Companies run by large families are now more interested in a listing on the Stock Exchange of Thailand (SET) to raise funds for expansion and improved liquidity after suffering from the pandemic for more than a year, a said Anuwat Ruamsuke, Managing Director of Phatra Securities.

Mr. Anuwat said these family businesses have good fundamentals, have shown strong performance and have good business prospects. They are ready to raise funds in the IPO market or the primary market, and to register on the SET, the alternative investment market (MAI) or secondary markets.

He said the pandemic had affected a wide range of businesses, especially large, unlisted family businesses which are generally profitable under normal circumstances but are struggling due to low liquidity. These companies feel the need to increase their working capital through IPOs and stock market fundraisers, Anuwat said.

The tech industry is an attractive sector, and SET is revising registration rules to make it easier for e-commerce businesses to register faster, he said.

“I believe that in the coming years the Thai IPO market will continue to grow as more and more companies are interested in entering the stock exchanges,” Mr. Anuwat said. “Compared to other countries in the region, including Singapore, the Thai stock market is a regional leader, recording the highest value for IPOs and the most liquid trade value in secondary markets.”

FRENZY FINANCING

Phatra Securities has successfully integrated large companies into SET, such as PTT Oil and Retail Business Plc (OR), which it listed last quarter. The company is also serving as an advisor for the planned listing of Ngern Tid Lor Plc (TIDLOR) this month.

Manpong Senanarong, senior executive vice president of SET, said he expects the number of companies listed on SET and MAI and the total value of funds raised this year to exceed last year.

In the first quarter of 2021, five companies were listed.

In the second quarter, at least five companies are expected to be enrolled in SET and AMI. The second and fourth quarters are normally considered quotation periods because they are periods in which companies have finalized their financial statements.

However, due to the pandemic, some companies have postponed their IPO plans because they need to adjust their business strategies and structure to adapt to a new business environment.

Regardless of how the pandemic unfolds, whether a company is prepared to prepare its accounting and financial information, apply for a stock exchange filing with the Securities and Exchange Commission (SEC), and seek permission from SET to list its shares, this company can raise funds on the capital market.

Investment-hungry companies are tech companies and businesses that are still operational but have been hit hard by the pandemic, Manpong said.

As Thailand suffers from a third wave of the pandemic and mass inoculation is a distant dream, it’s unclear how long it will take to bring the outbreak under control.

Economic uncertainty can negatively affect business performance, as evidenced by some overseas markets that have been overwhelmed by the pandemic, he said.

BILLION BAHT LIST

According to the SEC, between January and March, five companies launched IPOs with a total offering value of 56.2 billion baht. The top three companies with the highest bid values ​​were OR, which raised 54 billion baht, followed by Rojukiss International Plc (KISS) with 1.37 billion and President Automobile Industries Plc (PACO) with 364 million baht. .

Between April 26 and May 4, three companies are listed on the stock exchange: AssetWise Plc (ASW), a real estate developer specializing in residential, including condos, which is listed on the SET; Prosper Engineering Plc (PROS), a mechanical and electrical engineering services contractor, registered on the MAI; and Proen Corp Plc (PROEN), a communications and information technology company and provider of an international data center, listed on the AMI.

TIDLOR plans to appear on SET on May 10 of this year. It is a large non-bank company licensed by the Bank of Thailand that focuses on vehicle title lending, used truck hire finance services and other types of loans, in particular brokerage services in life and non-life insurance under the Ngern Tid brand. Lor.

TIDLOR has proposed an IPO of up to 907,428,600 shares (39.1% of total issued shares after the IPO), divided into newly issued shares of up to 210,816,700 shares and existing shares offered by shareholders of a maximum of 696,611,900 shares. The over-allotment shares (greenshoe) do not exceed 136,114,200, with the IPO price set at 36.50 baht per share.

CLOGGED PIPE

SET reported that 10 companies are planning to launch IPOs: Don Muang Tollway Plc (DMT), Mena Transport Plc (MENA), NSL Foods Plc (NSL), AMR Asia Plc (AMR), Civil Engineering Plc (CIVIL) , Srinanaporn Marketing Plc (SNNP), Siam Technic Concrete Plc (STECH), Pinthong Industrial Park Plc (PIN), Clover Power Plc (PV) and Chotiwat Manufacturing Plc (CMCF).

Eight other companies plan to be listed on the AMI: nForce Secure Plc (NFSC), Addtech Hub Plc (ADD), Ditto (Thailand) Plc (DITTO), Winnergy Medical Plc (WINMED), Bluebik Group Plc (BLU), JSP Pharmaceutical Manufacturing (Thailand) Plc (JP), Saintmed Plc (SMD) and Delta Paint Plc (DPAINT).

In terms of real estate investment trusts, the pipeline includes B&G Leasehold Real Estate Investment Trust (BGREIT), KTBST Mixed Leasehold Real Estate Investment Trust (KTBSTMR), Supalai Real Estate Investment (SPALIRT), Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy -Back Condition (GROREIT), and INET Leasehold Real Estate Investment (INETREIT).

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