The Market for Alternative Investment (MAI) expects many new small and medium-sized enterprises (SMEs) to float shares on the bourse next year before a more stringent listing criteria takes effect in 2024.
Prapan Charoenprawatt, executive vice-president of the Stock Exchange of Thailand (SET), said about 15 companies with a total market capitalisation of 18-20 billion baht are expected to list on the MAI this year.
So far this year, 12 companies have applied to the Securities and Exchange Commission for permission to raise funds through an initial public offering, while eight companies have started trading shares on the MAI.
"The MAI expects more companies than usual to float their shares on the secondary bourse next year, because in 2024 there will be an adjustment of the criteria for listing on the exchange," he said.
The new criteria will require applicants to have a net profit in the three years prior to their listing, meaning that if they apply for listing in 2024, they have to post an overall profit during 2021-2023, including a net profit of at least 10 million baht in the most recent year.
The bourse also requires a set of accounting standards for publicly accountable entities for the past three years.
LiVE Exchange (LiVEx), n SET securities trading platform for startups and small businesses, expects two more companies to begin trading this year, one of which is an energy company and the other a subsidiary of a listed IT firm that wants to spin off from its parent.
Advance Web Service, which was the first stock to be traded on LiVEx on Sept 9 this year, attracted a satisfactory response from investors, particularly high net worth investors who have a good understanding of the company's business, said Mr Prapan.
The MAI, together with the MAI Listed Company Association, is organising the 7th MAI Forum 2022 on Oct 28, under the concept "Growing Stronger Together, We Are SME Role Model".
This marks the return of the event, which has been absent since the start of the pandemic, reflecting the role of capital markets, especially the MAI, as a source of funding for SMEs that survived the Covid-19 crisis and are now facing challenges in the global financial markets, according to the bourse.
The association has 188 member companies with an overall market capitalisation of 561 billion baht as of Aug 25.
