The Stock Exchange of Thailand (SET) is providing an ecosystem that supports the listing of family businesses, saying the group is a strong foundation of the economy and has the potential for future growth.
Family business is one of the target groups for the bourse to expand the listed company base, said chairman Kitipong Urapeepatanapong.
"The SET has emphasised and supported the growth of family businesses as we have a strategic plan to promote entrepreneurs in terms of knowledge, tools and working systems to increase capabilities, create professionalism in business operations and expand opportunities for them to access sources of funds in the capital market," he said.
Kitipong: Key target group for SET
Being a listed company helps strengthen the credibility of family businesses, making it easier for them to attract professional executives and increasing their competitive potential because there are many channels for raising funds at low cost, said Mr Kitipong.
For example, the SET has LiVE Exchange (LiVEx), a new fundraising channel, which is another mechanism for family businesses to expand their growth opportunities through the capital market.
Currently, family businesses account for 67% of the total number of listed companies.
Since 2016, about 76% of newly listed companies are family businesses, and the trend has continued to increase, he added.
SET senior executive vice-president Soraphol Tulayasathien said Thailand has thousands of large family businesses that are still non-listed firms.
Currently, there are 633 companies listed on SET and 223 companies listed on the Market for Alternative Investment.
In 2023, there were 40 initial public offerings, of which 34 were family businesses. In the first seven months of 2024, there were 15 companies listed on the SET, of which 12 were family businesses.
"According to the statistics, it was found that most companies after being listed on the exchanges grew 2-5 times in the seven-year period after going public," he said.
Generally, family businesses that are non-listed firms have an average lifespan of 18 years or only one generation. If transformed into a listed firm, the lifespan will be twice as long or about 36 years, said Mr Soraphol.
Soraphol: Able to lengthen lifespan
If there is good planning, strengthening the business with environmental, social and governance (ESG) guidelines and there are professionals in the management, they can last for 50 years. The heirs in the second or third generations may join the management or become directors of the company, he added.
The bourse is hosting a two-day event through Friday called "The 2nd SET Annual Conference on Family Business: Family Business in the Globalized Asia".
Experts and consultants from leading international institutions, such as Martin Roll, a world-class expert on family businesses and family offices, and Prof Winnie Qian Peng, an academic, consultant and speaker, will share case studies of growing family businesses as well as strategies for creating and adapting successful family businesses in Asia, said Mr Kitipong.
In addition, several leading executives from family businesses, such as Central Group, Amata Corporation, Banpu, Supara Group and GQ Apparel, Toshiba Thailand, AAPICO Hitech and Jubilee Enterprise, will share their perspectives on the keys to success and business management.
In addition, the founding executives and second and third-generation heirs will share their perspectives on family business management, which must give importance to all dimensions in order to adapt to changes and be able to forward the business and grow steadily, he said.