The Stock Exchange of Thailand (SET) will scrutinise possible irregular trading with high turnover volume after the share prices of recently listed securities reached the resistance point on their first trading day.
The examination applies to all cases with irregular share price movements, not just IPO shares, said SET president Pakorn Peetathawatchai.
Further details of the process cannot be disclosed, he said.
Three companies recently listed on the SET and the Market for Alternative Investment (MAI). The share price of SET-listed Sri Trang Gloves Thailand Plc (STGT) rose 78% on its first trading day, while the share prices of MAI-listed Silicon Craft Technology Plc (SICT) and I&I Group Plc (IIG) surged by the 200% limit in their debuts.
These businesses have drawn investor interest because their operations have benefited from or been cushioned against the coronavirus crisis. STGT is the world's third-largest rubber glove maker, while SICT and IIG deal with information technology.
Besides the high growth potential of these businesses, the market capitalisation size and the IPO price were factors supporting the rise in share price, Mr Pakorn said.
He said new IPOs normally contribute to the bourse's market cap to the tune of 250-300 billion baht each year, typically from 30-40 newly listed companies. But in 2020, market cap from IPO listings has exceeded 330 billion baht from five newly listed firms.
Although the IPO market cap in 2020 will be higher than the average total, the number of newly listed firms will be lower than average because many IPOs in the pipeline may delay their listings during the economic downturn, Mr Pakorn said.
The new cabinet and its ministers in charge of economic affairs will boost market confidence on expectations of policy continuity from the previous team, he said, adding that market participants will keep a close watch on new economic stimulus packages.
SET senior executive vice-president Soraphol Tulayasathien said foreign investors were net sellers of local equities at 225.6 billion baht during the first seven months of 2020, but lower foreign net sales were detected in July.