New Listings in 2005 Boost Thai Market Capitalization by Over THB100 Billion

The Stock Exchange of Thailand (SET) summed up its new listings’ performance in 2005. There were 36 new listings, raising about THB30 billion in funds. Their market capitalization, at IPO prices, was recorded at over THB100 billion. More than half of these new listings closed higher than their IPO prices on their first trading dates. Twenty-two companies averaged 22% above their IPO returns, led by Sahamit Machinery, Permsin Steel Works, and Solartron.

The SET announced that 2005’s new listings had a total market capitalization, at IPO prices, of THB110.95 billion (approx. USD2.71 billion), excluding PTT Chemical Pcl., which did not offer an IPO. The top four sectors with the highest number of new listings were Construction Materials (with 8 companies), Automotive (7 firms), and Property Development and Finance and Securities (each with 5 companies).

New listings in 2005 had an average market capitalization, at their IPO prices, of THB3.17 billion, and raised about THB860 million each.

Existing listed companies expanded their businesses and raised approximately THB76 billion last year.

Four of last year’s new listings qualified for the calculation of SET100 Index to be used for H1/2006: Glow Energy Pcl. (GLOW), Yarnapund Pcl. (YNP), Somboon Advance Technology Pcl. (SAT), and Khon Kaen Sugar Industry Pcl. (KSL). This qualification for the SET100 Index shows that the companies have high liquidity and large market capitalization.

These new companies’ prices, on average, closed 10.64% above their IPO prices. Twenty-two companies yielded an average of 22.2% returns for investors. Another 13 new listings closed 8.93% lower on average.

The top five newly listed companies yielding the highest first-trading-day returns were Sahamit Machinery Pcl. (90% above IPO), Permsin Steel Works Pcl. (54%), Solartron Pcl. (45%), Thai Steel Cable Pcl. (45%), and Thai Unique Coil Center Pcl. (41%).

This year the SET will be implementing more proactive marketing strategies to attract companies to list, working with its network organizations to present information to about 380 potential companies. Twenty companies have already submitted listing applications and are in the process of listing.

In addition to encouraging new listings, the SET will help existing listed companies to utilize all financial tools to improve their liquidity, as this will benefit investors as well as the companies themselves. In 2005 (as of Nov. 30) there were 23 listed firms which split their par value, and 16 companies which paid stock dividends. These actions enhanced their free-float shares as well as trading liquidity.