The Stock Exchange of Thailand (SET) performed strongly in the first month of 2023, with companies continuing to mobilise funds through the bourse in various forms to expand their businesses, according to the authorities.
The Securities and Exchange Commission (SEC) said last month three securities issued initial public offerings (IPOs) with a total value of 3.43 billion baht.
Some 14 companies are currently having their listing applications vetted, said the regulator. An additional 74 companies are in the consulting process to raise funds from the stock market.
"This shows the capital market is an important source of funds for the private sector and companies continue to mobilise funds from them," said the SEC.
The commission reported one digital asset firm, Real Estate Exponential Co, is pursuing an initial coin offering, while 32 other proposals are in the consultation process.
Regarding fundraising via crowdfunding, 16 companies have completed their projects with a total value of 537 million baht, tallying 380 companies raising funds through crowdfunding with a total value of 6.29 billion baht.
Meanwhile, 19 small and medium enterprises (SMEs) completed their private placement (PP) fund raising in 2022. So far, 19 SMEs completed PP offerings with an overall value of 272 million baht, the SEC said.
As for corporate bonds, 1.26 trillion baht's worth of long-term bonds were issued last year, of which 1.16 trillion were investment-grade bonds and 98 billion were high-yield bonds.
This year one company issued sustainability bonds worth 20 billion baht, bringing the cumulative sum of 30 companies issuing such bonds to 543 billion baht.
According to the SET, the trading volume of the Thai stock market remained the highest in Asean.
In January, the average daily turnover in the main bourse and the Market for Alternative Investment totalled 72 billion baht, up from 56.2 billion a month earlier. However, it decreased 23.7% from the same period last year.
Foreign investors were net buyers for the fourth consecutive month in January, worth 19 billion baht.
"The SET's market capitalisation ranks third in the region. If more companies continue to list on the bourse, the SET could potentially overtake Singapore for top market cap in Asean," said SET senior executive vice-president Soraphol Tulayasathien.
As of December 2022, the market capitalisation in Asean was Singapore first at US$619 billion, Indonesia with $614 billion, Thailand $604 billion, Malaysia $381 billion and the Philippines $239 billion.