<article>Despite macro-economic uncertainties, <a style="color: #000080;" href="http://set.or.th">The Stock Exchange of Thailand (SET) </a>stays positive to achieve its target of market capitalisation of initial public offering (IPO) offerings issued this year.</article>

Despite macro-economic uncertainties, <a style="color: #000080;" href="http://set.or.th">The Stock Exchange of Thailand (SET) </a>stays positive to achieve its target of market capitalisation of initial public offering (IPO) offerings issued this year.
Kesara Manchusree, president of the SET, earlier told the media that it projected the IPO market cap would increase from 220 billion baht ($6.03 billion) in 2015 to 270 billion baht ($7.4 billion) in 2016, excluding infrastructure funds.
The number of IPOs launched in Thailand last year included 21 listed on the SET, 13 listed on the Market for Alternative Investment (MAI) and 6 real estate investment trusts and property funds. If the two infrastructure funds were counted, the value would rise to 297 billion baht last year.
As the IPO markets in many ASEAN countries were going through a slowdown, Thailand has marked the highest record of new IPO market cap in the region for the third consecutive year.
Meanwhile, the average daily trading volume was approximately 44.53 billion baht in 2015, slightly lower than the previous year’s 45.5 billion baht. The Thai market has maintained the highest trading volume for four years in a row and the SET expects to see the daily trading volume hike to 50 billion baht in 2016.
However, since the beginning of this year, the Thai stock market’s trading volume was subdued due mainly to China’s economic slowdown and currency concerns.
“The currency fluctuations and the economic uncertainties domestically and globally make this year more challenging. However, we believe that if the government can stimulate the country’s investments, it will help improve investor confidence,” Somphob Sakpanpanom, CEO of <a href="http://www.assetpro.co.th/">Asset Pro Management.</a>
He said if the stock market do not fluctuate much, the IPO discount will be around 20-25 per cent. In the worse scenario, the discount may be increased to 25-20 per cent depending on the businesses.
However, the IPO market is expected to be buoyant with SET’s new policy that allows foreign firms to raise fund on Thai bourse.
“Many companies from CLMV (Cambodia, Laos, Myanmar and Vietnam) are interested to raise funds on Thai stock markets. We are confident that this policy will help boost the IPO market cap this year,” the SET’s president said.
Additionally, the SET plans to set up a private equity fund with the seed capital of 500 million baht, aiming to invest in qualified small and medium-sized business which lack financial liquidity.
“Apart from financial support, we will also provide training courses to teach them how to gain the benefits from the capital market and how to mobilise funds from the bourses as we expect they will be listed on the MAI in the end,” she said.
However, it has not finalised yet if it will invest in the SMEs directly or inject money into the existing private equity funds.
In addition, she said, the SET plans to develop the market by expanding market cap through new IPOs and launching new products and asset classes such as rubber futures.
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Despite macro-economic uncertainties, SET stays positive on achieving its target of market capitalisation of IPOs issued this year.

Thailand hopes to continue robust IPO track record despite economic uncertainties

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