IPO Thailand Outlook 2024

The outlook for initial public offerings (IPOs) in Thailand for 2024 is cautiously optimistic, driven by improved market sentiment and strategic initiatives from the Stock Exchange of Thailand (SET). Here’s a comprehensive look at the key highlights and expectations for the Thai IPO market in 2024.

Market Sentiment and Expectations

Improved Sentiment
The SET expects a notable rise in IPO activity in 2024 compared to the previous year. This optimistic forecast is based on a more favorable investment climate, with 43 companies already applying for IPOs on Thai exchanges. These include:

  • 20 companies set to list on the SET.
  • 20 companies aiming for the Market for Alternative Investment (MAI).
  • 3 companies targeting the startup LiVE Platform.

Economic Growth Projections
Thailand’s economic recovery is expected to bolster the IPO market in 2024. The Bank of Thailand predicts GDP growth between 3.2% and 3.8%, a significant improvement from the 2.4% growth seen in 2023. This economic recovery is likely to boost consumer confidence and purchasing power, both key factors for a vibrant IPO environment.

Historical Context
Thailand hosted 40 IPOs in 2023, raising approximately $1.3 billion, though this marked a decline compared to previous years due to political uncertainties and unfavorable market conditions. Many companies postponed their listings, leading to a lower-than-expected IPO count.

First Half of 2024
In the first half of 2024, there were 17 IPOs—slightly fewer than the 18 IPOs seen during the same period in 2023. Notably, Thai Credit Bank became the first commercial bank to go public in a decade, raising $208 million with a market capitalization of $1 billion.

SET’s Plans for 2024
The SET has launched a three-year strategic plan designed to increase the competitiveness of the Thai capital market. Key initiatives include:

  • Strengthening Investor Trust: Enhancing regulatory frameworks to ensure higher-quality listings and better investor protection.
  • Encouraging New Listings: Hosting roadshows domestically and internationally to attract more investors.
  • Utilizing Technology: Incorporating AI for fraud prevention and enhancing market integrity.

These measures are expected to create a more attractive environment for issuers and investors, fueling more IPO activity in 2024.

Key Industries for IPOs
The consumer sector continues to attract significant investor interest, reflecting broader trends across Southeast Asia, where consumer goods have consistently been among the top industries for IPOs. Additionally, there is growing demand for real estate investment trusts (REITs), with several companies in this sector under consideration for public listing in 2024.

Conclusion
The outlook for Thailand’s IPO market in 2024 appears promising, supported by improved market conditions, strategic initiatives from the SET, and positive economic forecasts. While challenges remain due to the downturns experienced in previous years, the ongoing efforts to enhance regulatory frameworks and investor confidence are expected to drive increased IPO activity. As more companies prepare to enter the public markets, Thailand’s capital landscape is poised for a resurgence in new listings throughout the year.

By implementing these strategies, the Thai IPO market is set for growth, positioning 2024 as a year of recovery and opportunity.

Source
https://www2.deloitte.com/th/en/pages/audit/articles/th-ipo-newsletter-issue-1-2024.html

https://www.bangkokpost.com/business/investment/2727247/set-expects-volume-of-ipos-to-increase-in-2024

https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/audit/sea-aud-dea-sea-ipo-snapshot-2024-mid-year.pdf

https://www.thailand-business-news.com/asean/162418-asean-ipo-capital-market-outlookhttps://www.set.or.th/en/listing/ipo/ipo-statistics

https://www.ey.com/en_gl/insights/ipo/trendshttps://www.nexlaw.ai/top-trends-of-legal-ai-in-2024/

https://www.bangkokpost.com/business/investment/2727247/set-expects-volume-of-ipos-to-increase-in-2024

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