“The change of the Thai pronunciation to M-A-I is to better reflect its English acronym -- “mai”. The name is also easy to remember. The mai was created to provide investors with greater investment alternatives and entrepreneurs with a more efficient funding source,” said Mr. Vichate.
The name “mai” is derived from “Market for Alternative Investment”. The mai was established to help small and medium-sized businesses with good growth potential to access long-term funding in the capital market whilst carrying a lower level of risk. This will help reduce financial costs of businesses and hence improve their efficiency in financial management.
The mai president went on to say that: “The mai will act as a fundraising channel for young entrepreneurs starting out in knowledge- or innovation-based businesses. To qualify for mai listing, a business should have at least THB20 mln. in registered capital, have been continually operating for no less than 2 years, have a minimum of 20% of their shares held by retail shareholders and must show a profit in the year prior to listing.
“Besides being a market for young entrepreneurs, the mai is also an alternative for those wishing to invest in companies which are experiencing exponential growth in both their revenues and profits or showing signs of reaping gains in line with Thailand’s economic growth trends.”
Companies submitting their listing application by December 31, 2005, will receive a 10% discount on their corporate taxes, reducing their taxes from the normal rate of 30% to 20% for five consecutive years starting from their listing date. The privilege has been offered to encourage high potential businesses to access low-cost funds to expand their operations and hence significantly contribute to greater growth in the Thai economy.
