Benefits of Listing On the Thai Capital Market
Going public on the capital market is a major milestone for any company, and in Thailand, there are three distinct segments to choose from: the Stock Exchange of Thailand (SET), Market for Alternative Investment (mai), and the LiVE Exchange (LiVEx). Each segment has different listing criteria, with the SET being the most stringent.
To list on the SET, companies must have a paid-up capital size of at least 300 million baht with a net profit of at least 50 million baht over the past three years, and the latest year having a net profit of at least 30 million baht. The mai requires companies to have at least 50 million baht in paid-up capital with 10 million baht profit in the latest year. The LiVEx has no minimum requirement for paid-up capital, but companies must be registered as an SME (following the guidelines of the OSMEP), or as a startup with venture capital/private equity funding.
But why should a company consider going public in Thailand? Here are some of the benefits:
1. Access to Cheaper Cost of Funds:
Going public can provide companies with access to a wider range of funding sources, including equity, bonds, and loans, which can be more cost-effective than private financing options. This access to cheaper capital can help companies invest in new projects, expand their operations, and strengthen their competitive position in the market.
2. Improved Liquidity:
Being listed on the capital market provides companies with increased liquidity, as their shares can be easily traded on the exchange. This increased liquidity can attract more investors and provide existing shareholders with an opportunity to sell their shares if they need to raise capital or exit their investment.
3. Enhanced Reputation:
Going public can enhance a company’s reputation and credibility, as being listed on the stock exchange is often seen as a mark of reliability and trustworthiness. This can help attract customers, partners, and other stakeholders who are more likely to do business with reputable and trustworthy companies.
4. Access to Financial Tools:
Publicly listed companies have access to a range of financial tools, such as convertible bonds, warrants, and the issuance of stock dividends, which can help drive growth and expansion. These financial tools can provide companies with additional flexibility in raising capital and implementing strategic initiatives.
In addition, going public can provide companies with access to a larger pool of potential investors and enhance their liquidity, which can help to increase their visibility and attract new investors.
In addition, going public can provide companies with access to a larger pool of potential investors and enhance their liquidity, which can help to increase their visibility and attract new investors. However, the process of going public can be complex and daunting, and it’s important to have the right guidance and support. That’s where our expert team at Advisory Alliance & Partners (AA&P) comes in. We provide comprehensive advisory services to help guide companies through the IPO process and ensure they achieve the best possible outcome.
Visit our website at https://advisory-alliance.com/ to learn more about how we can help your company successfully go public and achieve its full potential.