Despite the Stock Exchange of Thailand (SET) flopping this year, initial public offering (IPO) activities remain lively, with 27 companies preparing to list on the Thai bourse.
Amidst a volatile investment environment, this year market regulators have given 27 companies the green light to raise funds through the IPO process and list on either the SET or Market for Alternative Investment (MAI).
LIVELY LISTINGS
This year 17 companies have mobilised funds through IPOs and listed on Thai stock exchanges. Among those, the highest return exceeded 200%, while the lowest contracted 23% on the first day of trading, according to the SET.
The 17 companies raised a total of 15.6 billion baht from the public, with a combined market capitalisation of 65.5 billion baht. Of the total, six firms reported negative returns, while 11 generated positive returns from the first day of trading.
Six companies were listed on the SET, with total fundraising of 12.4 billion baht, growing the bourse's market capitalisation by 3.56 billion baht. They are: Supreme Distribution (SUPREME), Neo Corporate (NEO), Bangkok Genomics Innovation (BKGI), NL Development (NL), Thai Credit Bank (CREDIT), and Advice IT Infinite (ADVICE).
Of the six new listings on the SET, four posted positive returns on the first day of trading, with BKGI tallying 170%, followed by ADVICE at 62%.
Two new listings recorded negative returns, comprising SUPREME (-11.5%) and CREDIT (-5.17%).
Eleven companies listed on the MAI, mobilising a total of 3.19 billion baht, increasing the secondary bourse's market cap by 11.9 billion. They are: Chuwit Farm (2019) (CFARM), Maguro Group (MAGURO), Light Up Total Solution (LTS), Stone One Plc (STX), Terabyte Plus (TERA), QTCG Plc (QTCG), BPS Technology (BPS), Asian Palm Oil (APO), PanelesMatic Solutions (PANEL), NAT Absolute Technologies (NAT), and Euro Creations PKCS (EURO).
Of the 11 stocks, seven posted positive returns on the first day of trading, with the highest return LTS at 201%, followed by BPS at 114%. Four companies recorded negative returns for the first day, including STX (-23.3%), QTCG (-20.8%), EURO (-18.9%), and PANEL (-4.89%).
Companies that produce relatively high returns are often involved in modern innovations or new economies. However, these are small-cap shares compared with stocks in developed markets or countries with production bases for new economy products.
Maguro, a Japanese restaurant chain, listed on the Market for Alternative Investment earlier this year.
PAIN POINTS
"With 17 newly listed companies this year, the total fundraising value is similar to the Vietnam stock market, where only one large stock was listed. The Vietnamese bourse is growing in a similar pattern to the Thai stock market in the past, when large state enterprises were privatised and listed," said Manpong Senanarong, senior executive vice-president of the SET.
Thailand has remained the largest IPO market in Southeast Asia for many years.
Over the past 2-3 years, the SET added new types of securities to meet investor demand, such as depositary receipts (DRs) with world-class underlying stocks from many developed markets, including the Magnificent 7 stocks of Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla. Thai investors can invest in these DRs using baht through Thai brokers.
According to Mr Manpong, the Thai stock market still has the potential to attract large stocks to list, especially family businesses and foreign companies with operations in Thailand.
The market cap of the Thai bourse normally increases by 200-250 billion baht annually from fundraising through IPOs and public offerings, he said.
"For investors, the pain points are a sharp price drop for stocks on the first day of trading and weak operating performance, resulting in losses. These arise from many factors and must be addressed based on the ecosystem, not only the bourse," said Mr Manpong.
The fundraising process involves several parties, including those who examine the financial statements, financial advisors, and regulatory agencies that vet companies wanting to go public, he said.
Mr Manpong is optimistic that the Thai stock market still holds potential to attract large stocks to be listed, especially family businesses and foreign companies which have business operations in Thailand.
SET OFFERINGS
1. P C L Holding (PCL) operates three businesses: diagnostic supplies and life science instruments; medical laboratory testing for healthcare businesses; and software and IT solutions for medical laboratories. The company wants to float 410 million shares (26.05% of total issued shares after the IPO), with a par value of 0.50 baht each. Yuanta Securities is the financial advisor.
2. Thai Auto Tools and Die (TATG), which designs and manufactures press parts and tools for the automotive industry, including stamping dies, checking fixtures and assembly jigs. The company plans to float 100 million shares (25% of total issued shares after the IPO) with a par value of 1 baht. Asia Plus Advisory is the financial advisor.
3. Jaspal (JPC) is a retailer of fashion and lifestyle products and manufacturer and distributor of bedding, mattresses and furniture. The company plans to offer up to 156 million shares (26% of total issued shares after the IPO) with a par value of 0.50 baht. Kasikorn Securities is the financial advisor.
4. Alpha Capital Partners Group (ACPG) is a holding company with a core business managing non-performing loans with collateral and non-performing assets governed by the Bank of Thailand. The company wants to launch an IPO of no more than 1,007,640,000 shares (45% of total issued shares after the IPO) consisting of newly issued shares of no more than 503,820,000 shares, existing shares offered by Pacific Investment Management (Mauritius) Ltd of no more than 256,950,000 shares, and existing shares offered by 9 Basil Pte Ltd of no more than 246,870,000 shares, at a par value of 2 baht each. Siam Commercial Bank and Maybank Securities (Thailand) are the financial advisors.
5. Special Natural Products (SNPS), which produces and sells herbal extracts and develops products for health, beauty and hygiene under its own brands and as an original design manufacturer, aims to float 105 million shares (25.93% of total issued shares after the IPO) with a par value of 1 baht each. Finansia Syrus Securities is the financial advisor.
6. Petchsrivichai Enterprise (PCE), a holding company investing in integrated palm oil production, aims to sell 750 million shares (27.27% of total issued shares after the IPO), with a par value of 1 baht each. Asset Pro Management is the financial advisor.
7. Food Moments (FM), a holding company that produces and distributes butchered chicken and processed chicken products, plans to float newly issued shares of no more than 270 million (25.52% of total issued shares after the IPO) and shares held by existing shareholders. The financial advisor is Optasia Capital.
8. T. Man Pharmaceutical (TMAN) manufactures and distributes pharmaceutical and healthcare products under the company's brands and customers' brands. TMAN plans to launch no more than 71,430,000 newly issued shares and 30,570,000 existing shares with no more than 25.5% of total issued shares after the IPO. Kasikorn Securities is the financial advisor.
9. Chaosua Foods Industry (CHAO) manufactures and distributes snack and processed meat products under the brands Chaosua and Wholesome. The company plans to issue no more than 87,684,100 shares (not exceeding 29.2% of total shares after the IPO) consisting of newly issued shares of no more than 46,944,100, existing shares of no more than 22,500,000 from Sagar Capital Pte, and existing shares of no more than 18,240,000 from Great Wind Group Ltd. Kasikorn Securities is the financial advisor.
10. Boonthavorn Retail Corporation (BOON), a retail business of products and services related to home improvement such as ceramic tiles, sanitary ware, kitchen ware, lighting solutions and lifestyle furniture, plans to offer 320 million shares (25% of total issued shares after the IPO) with a par value of 1 baht. Kasikorn Securities and Bualuang Securities are the financial advisors.
11. Pluk Phak Praw Rak Mae (OKJ), which provides services and healthy food, beverages and other products under the concept "Be Organic from Farm to Table", plans to offer shares of no more than 159 million (26.1% of total issued shares after the IPO) with a par value of 0.50 baht each. Bualuang Securities is a financial advisor.
12. Medeze Group (MEDEZE), whose businesses include analysing, isolation, cultivation and storage of stem cells and analysing immune cell quality, plans to offer no more than 268 million shares (25.09% of total issued shares after the IPO) with a par value of 0.50 baht each. Yuanta Securities (Thailand) is the financial advisor.
13. Ngernturbo (TURBO) plans to offer no more than 537 million shares (20.10% of total issued shares after the IPO) consisting of no more than 447,780,000 newly issued shares and no more than 89,220,000 existing shares of Kasikorn Vision Co Ltd. The company provides the Bank of Thailand's regulated loans such as motor and car title loans, personal loans and hire-purchase, as well as related services such as non-life and life insurance brokerage, under the brand Ngernturbo. Tisco Bank is the financial advisor.
14. Y.S.S. (Thailand) (YSS), which researches, develops, manufactures and distributes high-performance shock absorbers for motorcycles and automobiles under the brand YSS, plans to offer no more than 160 million shares (26.67% of total issued shares after the IPO), consisting of no more than 100 million newly issued shares and existing shares of no more than 60 million from Victory Rise Holdings Ltd, at a par value of 1 baht. Maybank Securities (Thailand) is the financial advisor.
15. Lamair Palm Oil (LM), which sells crude palm oil and byproducts used in the food and biodiesel industry, plans to float no more than 195,950,800 shares (25.79% of total issued shares after the IPO) with a par value of 0.50 baht. Fin Plus Advisory Co Ltd is the financial advisor.
IPOs on MAI
1. PMC Label Materials, which manufactures and distributes stickers and self-adhesive labels, plans to issue 115,715,000 new shares with a par value of 1 baht each. KGI Securities (Thailand) is the financial advisor.
2. Nice Call (NCP), which offers direct marketing services for telemarketing of products such as dietary supplements for health and beauty, as well as cosmetics and skincare products, plans to issue 50 million newly issued shares at a par value of 0.50 baht. The financial advisor is Capital One Partners.
3. Blue Solutions (BLUE), an ICT system integrator offering turnkey services including design, procurement, installation, implementation and maintenance, plans to issue 60 million new shares at a par value of 1 baht each. Silom Advisory Co Ltd is the financial advisor.
4. Bangkok Asset Intergroup (BKA), which provides renovation and repair services for second-hand properties plus a sales representative and broker agent, plans to issue 60 million new shares with par value of 0.50 baht. Advisory Plus Co Ltd is the financial advisor.
5. Interroyal Engineering Plc (IROYAL), a service provider for power plants and various industrial factories providing innovative products from global manufacturers, aims to offer 58 million newly issued shares at a par value of 0.50 baht each. Asset Pro Management is the financial advisor.
6. SEI Medical (SEI), a distributor of medical devices, disposable medical devices and scientific devices, including related services, plans to offer 50 million newly issued shares with a par value of 0.50 baht each. Avantgarde Capital is the financial advisor.
7. Sitron Power (SITRON), which provides engineering procurement and construction services for solar systems and maintenance services, plans to offer 18 million IPO shares with a par value of 1 baht each. Krungthai XSpring Securities is the financial advisor.
8. MPJ Logistics (MPJ), a full-service logistics provider including land transport, container yard management, international freight forwarding and warehouse services, plans to issue 53 million new shares at a par value of 0.50 baht. Capital One Partners is the financial advisor.
9. Pro Inside (PIS), a consultant, planner, designer and developer of integrated security and communication technology systems, plans to issue 140 million new shares with a par value of 0.50 baht. Siam Alpha Capital is the financial advisor.
10. Professional Laboratory Management Corp (PROLAB) aims to issue 48 million new shares with a par value of 0.50 baht each. Capital One Partners is the financial advisor. The company provides medical laboratory services to hospitals, clinics, government agencies, private companies and the public, as well as health check-up services and sales of medical supplies and equipment.
11. Inspire IVF (IVF) plans to issue 130 million shares with a par value of 0.50 baht each. Finnex Advisory is the financial advisor. IVF offers comprehensive fertility treatment services, including counselling and planning treatment for infertility conditions such as ICSI and IUI to enhance the success rate of conception for married couples.
12. PKN Inter Holding (PKN), which produces and distributes lifestyle products, collectable products, limited products, premium products and licensed products, plans to issue 25,400,000 new issued shares at a par value of 0.50 baht each. Optasia Capital is the financial advisor.