Thailand’s IPO Market Compare to Other SEA Countries in 2024

Thailand’s IPO Market: Overview

In 2024, Thailand’s initial public offering (IPO) market offers a mixed outlook, with both challenges and opportunities. Here’s a simplified overview of how Thailand’s IPO landscape compares to other Southeast Asian countries.

Performance in 2023

In 2023, Thailand had 40 IPOs, raising $1.3 billion. This made Thailand the second-largest IPO market in Southeast Asia, just behind Indonesia, which saw 79 IPOs raising $3.6 billion. Despite economic uncertainties, Thailand maintained a steady flow of new listings.

Trends in 2024

As of mid-2024, Thailand has seen 17 IPOs, slightly down from 18 during the same period in 2023. One major event was Thai Credit Bank’s IPO, the first time in a decade a commercial bank has gone public, raising $208 million. The Stock Exchange of Thailand (SET) remains optimistic, with 43 companies applying for IPOs.

Comparison with Southeast Asian Countries

Indonesia

Indonesia continues to lead the region in IPO activity, although its market slowed in early 2024 due to political uncertainty around the presidential elections. Despite the slowdown, Indonesia still had more deals and raised more funds than Thailand in 2024, following a strong year in 2023.

Malaysia

Malaysia has become a strong competitor in the IPO market. In the first half of 2024, it led the region with 21 listings that raised $450 million. Malaysia’s success is partly due to government efforts to speed up the IPO process, particularly for sectors like technology and consumer goods.

Philippines and Vietnam

The Philippines tripled its IPO fundraising in 2024 compared to previous years, while Vietnam is slowly recovering from market downturns. Both countries are emerging as alternative destinations for public listings in Southeast Asia.

Economic Conditions

Thailand’s economic recovery in 2024 has been slower than expected due to high household debt and low consumer spending. The Bank of Thailand projects modest growth, which may affect investor confidence and slow down IPO activity.

Regional Trends

IPO markets across Southeast Asia have faced challenges in early 2024, with fewer deals and lower funds raised due to global economic uncertainties and high interest rates. This has impacted investor confidence throughout the region.

Conclusion

While Thailand’s IPO market remains strong compared to some of its neighbors, it faces tough competition from Indonesia and Malaysia. The SET’s optimism about future listings and better market conditions could help Thailand improve its standing later in 2024. However, overcoming economic challenges will be key to sustaining growth and attracting new companies to go public.

Thailand’s ability to adapt to market dynamics will play a crucial role in maintaining its competitiveness in Southeast Asia’s evolving IPO market. To stay competitive, companies can benefit from the expert legal guidance provided by MSC International Law Office, ensuring they meet all regulatory requirements and successfully navigate the complexities of going public.