Digital consultancy I&I Group Plc (IIG) opened at its ceiling price and remained there on its first day of trading on the Market for Alternative Investment, reflecting a trend of big bets on tech-related services deemed safe from the coronavirus pandemic's effects.
IIG shares opened Thursday's session at the limit price of 19.80 baht, up 13.20 baht or 200% on the IPO price of 6.60 baht.
The strong debut came a week after Silicon Craft Technology (SICT), a microchip R&D firm, launched on the MAI and hit the +200% ceiling.
Pattera Dilokrungthirapop, board member and vice-chairman of the Stock Exchange of Thailand and chief executive of DBS Vickers Securities Thailand, said the phenomenon reflects investors' interest in tech-based companies.
The interest in IPO shares shows that investors are still hunting for returns and looking for businesses with strong fundamentals, she said.
"Tech-based stocks are definitely a trend worth paying attention to," Mrs Pattera said. "Therefore, the price of a tech-based share normally trades at a [price-earnings ratio] higher than normal stocks."
But she cautioned that the price of any stock should be based on fundamentals and operating performance. If the price overshoots actual value, it will eventually return to a reasonable price.
There is a shortage of tech-based stocks in the market, so investors are quick to jump on the ones available, Mrs Pattera said.
Most tech companies are still in the early stages of development. Their size and speed of development may be insufficient, and revenue may not meet the criteria to launch an IPO.
Some listed firms have embedded a tech component into their operations, but usually it's not big enough to spin off into a subsidiary, Mrs Pattera said. Other interesting digital businesses, meanwhile, have heritage burdens that are unattractive to investors.
"I want to encourage tech companies to prepare to raise funds from the capital market," she said. "This will create buzz for the Thai bourses in the future."
IIG shares closed on Thursday at 19.80 baht in trade worth 134.5 million baht.