The Securities and Exchange Commission (SEC) has revised the initial public offering (IPO) criteria for shares issued by foreign companies to shorten the required service period of a financial adviser (FA) after the IPO from three years to one year, equivalent to the criteria for Thai companies, to save on costs.
The new rule is effective from Sept 1.
Ruenvadee Suwanmongkol, the SEC's secretary-general, said the regulator aims to promote the role of the capital market as a source of financing for both domestic and international companies by revising any regulations that may unnecessarily hamper or obstruct the listing and trading process.
According to the resolution of the Capital Market Supervisory Board No.4/21 on March 16, there was an amendment to the listing criteria for foreign companies to reduce the period that FAs must spend to continue monitoring the applicants' issuance and offering of shares after the IPO from three years to one year, which is equivalent to the criteria applied to Thai companies.
Ms Ruenvadee said the improvement of the foreign listing criteria will reduce the cost burden of fundraising for foreign companies that want to raise funds in the Thai bourse, while ensuring the mechanism to protect investors' rights remains intact.
To list on the Thai market, foreign companies are required to submit any relevant information or reports in accordance with the rules of the SEC and the Stock Exchange of Thailand (SET), as well as prepare a regulatory mapping that compares the listing and trading regulations in the country where the company is located with Thai regulations.
Foreign companies planning to list on the Thai bourse must prepare alternative legal measures if the regulations in the origin country are significantly different from the Thai counterpart and may compromise the rights of investors in Thailand.
In addition, the SEC and the SET have developed an end-to-end service to provide a relationship manager.
The manager is a SET employee that serves as an adviser for the firm's fundraising to ensure compliance with the SEC and SET's criteria after the company is listed.