Capital Markets
From The Report: Thailand 2016
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The Thai market consistently outperforms many of its neighbours in terms of trading volumes. In January 2016 over $23bn of shares changed hands on the Stock Exchange of Thailand, compared to some $9bn on Bursa Malaysia, over $4bn on the Indonesia Stock Exchange and $16bn on the Singapore Exchange. Thailand is transforming from a large but secondary player in the region to a market of focus. The high level of turnover and the steady corporate activity are generating considerable interest and the right conditions for rapid development. The country has already become the market of choice for issuers in the Mekong region, and is starting to get noticed by the international investment community as being more than just a small local market. If reforms continue, and if the new government is able to keep the markets open and fair, Thailand may well find itself playing a new and significant role in the development of the ASEAN region’s capital markets. This chapter contains interviews with Kesara Manchsree, President and CEO, the Stock Exchange of Thailand; and Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission; and a viewpoint from Chaipatr Srivisarvacha, CEO, KT ZIMCO Securities Company.

Articles from this Chapter

Overview

A rising star: The market has seen a flurry of initial public offerings while the authorities are taking steps to boost trading
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The Thai capital markets have performed poorly in recent years in terms of the benchmark, with the Stock Exchange of Thailand (SET) Index trading below the recent peak hit in 2013 as of early 2016. The markets have nevertheless been developing in ways that suggest long-term strength and regional significance. Thailand has been the initial public offering (IPO) capital of South-east Asia, and volumes achieved have been higher than those in nearby countries. The new government and the regulators are…

Interview

A regional leader: OBG talks to Kesara Manchusree, President and CEO, the Stock Exchange of Thailand (SET)
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Interview:Kesara Manchusree How would you assess the overall performance of the SET over the past few years? KESARA MANCHUSREE: The SET has largely maintained its strong performance over the past few years. Market capitalisation as of the end of 2015 stood at $349bn, slightly behind the Bursa Malaysia. Initial public offerings (IPOs) have boomed recently, with more than 40 IPOs launching in each of the past few years in a variety of structures including common stocks, holding stocks, real…

Interview

Clarity and diversity: OBG talks to Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission (SEC)
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Interview:Rapee Sucharitakul What are the regulatory challenges for increasing market width and depth to promote the Thai capital market as a regional financial connector? RAPEE SUCHARITAKUL: The SEC aims to ensure that a variety of products are available in the Thai capital market to better serve fund mobilisation while providing alternatives for investors worldwide, be they different types of mutual funds, real estate investment trusts (REITs) and investment funds, cross-border listings,…

Analysis

On a roll: Becoming the trading hub of choice within ASEAN
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Thailand had the strongest initial public offering (IPO) market in the region in 2015. Not only was a significant amount of new equity sold, but the issuers represented a good cross-section of the economy. In terms of deal flow and demand, 2016 is looking good as well. Despite the weak benchmark index in the face of political uncertainty and international headwinds, the new offering market has outperformed expectations, further strengthening Thailand’s reputation as a major market of the ASEAN…

Viewpoint

U-shaped recovery: Chaipatr Srivisarvacha, CEO, KT ZMICO Securities Company, on economic headwinds and opportunities for ASEAN
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With an uneven economic and financial backdrop, not only for Thailand but also the rest of the world, 2015 was a tough year. The headwinds shaking the Thai stock market as well as economic confidence have included the plunge of oil prices and other commodities; increased geopolitical unrest, particularly in Ukraine and the Middle East; a slowdown of the Chinese economy; disruptive asset price shifts and high volatility in global financial markets; and further appreciation of the greenback as the…

Analysis

Active players: In spite of restrictions, foreign investors play a significant role
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Foreign investors play an important role in the Thai capital markets, and their participation is highly valued. But their involvement is conditional due to restrictions on foreign investment. While these limits are likely to remain in place, the authorities in the country are making efforts to attract non-local money to the markets. Routes To The Market Foreign investors are free to participate in the stock market, and they can import funds for their investments on the exchange without restriction.…

Analysis

SEAFCO: Construction services
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The Company SEAFCO was incorporated in 1974, with registered capital of BT3m ($90,300) (paid-up capital of BT1.5m, $45,150 ) and a par value of BT1000 ($30). The company focused on the construction of small-diameter bored piles. SEAFCO increased its capital to BT120m ($3.6m), and changed a par value from BT1000 ($30) to BT100 ($3) in 1994. SEAFCO changed the par value from BT100 ($3) to BT1 ($0.03) and raised BT90m ($2.7m) from the existing shareholders at the price of BT1 ($0.03) per share, increasing the paid-up capital to BT210m ($6.3m). SEAFCO became a public company on March 18, 2004 and listed in www. settrade.com on September 3, 2004. SEAFCO…

Analysis

Central Pattana: Property development
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The Company Central Pattana (CPN) is Thailand’s largest shopping mall developer, with a 20% market share in the Bangkok Metropolitan Area. The company, established in 1980, is one of the flagship businesses of the Central Group (Chirathivat family), which is involved in the retail, hotel, restaurant and trading businesses. The Central Group holds a 55% stake in the company. CPN became a listed company in the Stock Exchange of Thailand in 1995. Since 2014, it has been the only Thai company in the real estate sector selected as an index component of the Dow Jones Sustainability Indices Emerging Markets. As of the end of 2015, CPN had total net…

Analysis

AMATA Corporation: Property development
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The Company Amata Corporation (Amata) is one of the leading industrial estate developers and managers in Thailand. Amata has built a strong regional platform that serves a portfolio of over 1000 clients from around the globe. Inside its projects, the company is responsible for road systems, security systems, reliable utilities and waste disposal facilities. It also offers ready-built factories in its industrial estates. The company’s three estates have good strategic locations. Amata Nakorn and Amata City are situated in Thailand’s eastern seaboard and Amata City Bien Hoa Industrial Park is linked to Highway No. 1, which connects the north…

Analysis

Workpoint Entertainment: Media
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The Company Started in 1989, Workpoint is a TV broadcasting production house with an expertise in game shows and variety programmes. Many of these have become very successful and one of its famous shows, “Ching Roi Ching Lan”, has been on the air for more than two decades. The key persons behind Workpoint’s success are Phanya Nirunkul and Prapas Cholsaranon, with each holding about 30% of the company’s shares at present. In September 2011, with its 20 years of experience and a large pool of TV content, the company entered the satellite TV business with its first channel, WorkpointTV. A second satellite channel, Channel 6, started broadcasting…

Analysis

Srisawad Power 1979: Financial services
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The Company Srisawad Power 1979 (SAWAD) was established by the Kaewbootta family mainly to offer collateral-backed consumer loans. Moreover, it offers auto hire purchase loans for new motorcycles and non-collateralised personal loans. However, the firm is tending to lower its exposure to these businesses as it prefers to focus more on collateral-backed lending. In addition, SAWAD offers other auto-related services, including auto tax extensions, auto registration and insurance. Moreover, it recently diversified to the debt collection and asset management businesses (NPL purchases) as well as collateralised lending to small and medium-sized enterprises…

Analysis

Airports of Thailand: Transport and logistics
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The Company Airports of Thailand (AOT) was formerly a government entity. The company changed its status to a public company in September 2002. Currently, Thailand’s Ministry of Finance holds a 70% investment stake in AOT. It operates six airports nationwide, including two in Bangkok (Suvarnabhumi International Airport, or SBIA, and Don Mueang International Airport, or DMK), two airports in the north (Chiang Mai International Airport, or CNX, and Mae Fah Luang-Chiang Rai International Airport, or CEI) and two airports in the south (Phuket International Airport, or HKT, and Hat Yai International Airport, or HDY). SBIA is the major airport hub,…