The Stock Exchange of Thailand has issued the listing and trading criteria for LiVE Exchange (LiVEx), a new bourse that aims to serve as a fundraising platform for small and medium-sized enterprises (SMEs) and startups.
After receiving approval from the Securities and Exchange Commission (SEC), the regulations become effective on March 31.
Prapan Charoenprawatt was appointed LiVEx president, effective from Tuesday.
Manpong Senanarong, senior executive vice-president of the SET, said the bourse has a strategic plan to connect and enhance funding opportunities across all sectors, in particular increasing access to funding for SMEs and startups through the capital market.
Mr Prapan said LiVEx is designed for SMEs and startups that need funds for business expansion but lack the opportunity. Listing on LiVEx will provide these companies with greater flexibility and serve as a stepping stone for them to list on larger exchanges such as the SET and Market for Alternative Investment (MAI).
LiVEx has high potential to grow because many SMEs and startups are seeking to raise funds for their business expansion, he said. Three companies in the food and technology industries are already in the pipeline to list on LiVEx, Mr Prapan said.
Mr Manpong said the listing criteria for LiVEx have been designed to be more lenient than those for the SET and MAI. For example, the qualification for an issuer and duties after the listing are eased to encourage more SMEs and startups to raise funding via the exchange, he said.
However, requirements for investors have been tightened because investment in small companies and startups is considered riskier than for well-established companies. Investment in LiVEx requires higher levels of knowledge, experience, financial capacity and risk tolerance, said Mr Manpong.
Mr Prapan said to list on LiVEx, an entity must be a public company that has been granted listing approval from the SEC.
Prospective companies wanting to list must be a medium-sized SME or bigger under the definition of the Office of Small and Medium Enterprises Promotion, or a startup with venture capital or private equity.
In addition, the company's executives must pass a training course to prepare for listing on the capital market.
For trading criteria, only professional, high net worth or ultra high net worth investors as specified by the SEC are allowed to trade on the exchange.
The accounts and trading are prepaid, meaning investors are required to have enough shares or money in place before making transactions.
Trading hours are from 9.30am to 11am and transactions are made via the automatic order matching auction method once a day, to be settled and cleared on the same day with gross settlement, meaning transactions they are handled and settled individually.
Interested SMEs and startups can submit a filing form at www.live-platforms.com. The registration fee is waived from 2022-2024.