SET bent on meeting distant B250bn IPO goal for 2019
The Stock Exchange of Thailand (SET) is confident it can create new market capitalisation worth 250 billion baht from IPOs this year, even though these deals have fetched an initial market value of only 55.5 billion so far this year.
Many IPO launches are on the horizon, which should bump up capitalisation to 250 billion baht this year, said SET president Pakorn Peetathawatchai.
The SET plans to have the Thai bourse's market cap reach 22-23 trillion baht by 2023.
Soraphol Tulayasathien, senior executive vice-president of the SET, said the bourse is the top performing IPO market in Asean, with total fundraising of US$720 million year-to-date, followed by Singapore at $643 million and Indonesia at $632 million.
In terms of market value from 2014 to July 2019, the SET saw market cap growth of $15.6 billion, compared with Singapore and Indonesia at $8.82 billion and $5.31 million, respectively.
SET-listed Super Energy Power Plant Infrastructure Fund (SUPEREIF) is among the top five IPOs in fundraising size in Asean this year, valued at $162 million.
Others are Prime US REIT, which is listed on the Singaporean exchange, with IPO funds worth $612 million; Asuransi Jiwa Sinarmas, which is listed on Indonesian stock market, with an IPO size of $314 million; and Leong Hup International Bhd, listed on the Malaysian stock exchange, with an IPO of $248 million.
Mr Pakorn said there are four themes -- well-being stocks (components in the SETTHSI index), infrastructure funds, high-dividend plays and stocks with exposure to neighbouring markets, such as Cambodia, Laos, Myanmar and Vietnam -- for ploughing money into the SET amid uncertainties.
Diversification of investment destinations and products are also recommended, he said.
Regarding global fund managers' feedback after the recent Thailand Focus, Mr Pakorn said they were satisfied with information provided at the SET's annual inbound roadshow.
Managers are paying greater attention to environmental, social and governance stocks, as well as small and mid-cap growth stocks.
Positive market sentiment is expected to continue for the remainder of this year based on several supportive factors.
A 30% jump in the average daily trading value in the Thai stock market to 65 billion baht last month reflected investor confidence, while offshore capital is expected to continue flowing into the market for the rest of this year.