Thailand to ease IPO, foreign listing rules in market revamp

Thailand plans to simplify stock-listing procedures as part of a broader drive to strengthen capital market competitiveness and attract global investors.

The “Thai Capital Market Attractiveness Initiative” aims to bolster investor confidence and position the Thai market as a regional fundraising hub, according to a statement on Monday (Oct 6) from the Taskforce for a Competitive and Attractive Market. It’s meant to address both demand- and supply-side challenges.

“We need urgent actions to restore the appeal of the Thai stock market among the international investors,” Asadej Kongsiri, the stock exchange’s president, said at a press conference. “More listings of companies in the new growth industry should be promptly added to draw those investors’ interest.”

Thailand’s benchmark stock index has dropped more than 7 per cent this year, the worst performer among Asia’s major stock markets, as international funds withdrew about US$2.9 billion. Streamlining initial public offering (IPO) and foreign listing processes, attracting high-quality companies, and scaling up listed firms’ value may help bring flows back to the country.

The new initiative reflects a coordinated effort between government and private sectors to drive structural reform and ensure long-term competitiveness, said Pornanong Budsaratragoon, the Securities and Exchange Commission’s secretary-general. The programme’s next phase will include bond markets, investment units, and a digital capital market, she said.

The initiative introduces four pillars – Quality Demand, Attractive Supply, Trusted Market, and Supportive Ecosystem. The finance ministry, Securities and Exchange Commission, Stock Exchange of Thailand, and Federation of Thai Capital Market Organisations jointly announced the project on Monday.

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The collaboration is “a significant turning point”, emphasising efforts to attract New Economy businesses, enhance transparency, and expand investment product offerings to sustain market resilience amid global volatility, according to Asadej. BLOOMBERG