The Stock Exchange of Thailand (SET) is reviewing free float and initial public offering (IPO) distribution requirements for new listings on SET and the Market for Alternative Investment (mai). The proposed amendments aim to provide a clearer, internationally-aligned regulatory framework, enhance the Thai capital market's attractiveness as a listing venue, and strengthen its regional competitiveness in line with SET's strategic goals of unlocking growth opportunities and solidifying its position as a premier listing hub for flagship domestic and international businesses.
SET is therefore seeking feedback on “Revision of New Listing Rules: Distribution of Minority Shareholders (Free Float) and Initial Public Offering (IPO)” as summarized below.
1. Free float requirements:
1.1 Remove the grace period provisions for free float compliance applicable to large corporations in order to avoid the use of discretionary judgement.
1.2 Reduce the minimum free float percentage for large corporations from 20 percent to 17 percent to encourage listings by major companies. This proposed requirement remains above the 15 percent threshold required for maintaining status as listed companies.
1.3 Revise the tier structure by basing the classification of listed companies on market capitalization instead of paid-up capital to better reflect their actual business value and establish a minimum free float requirement of 30 million shares.
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Current |
|
Proposed |
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Paid-up Capital (THB Million) |
Minimum Free Float Percentage |
|
Market Capitalization* (THB Million) |
Minimum Percentage |
Minimum |
||
|
< 300 |
30% |
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< 1,500 |
30% |
+30 million shares |
||
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300 < x < 3,000 |
25% |
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1,500 < x < 15,000 |
25% |
|||
|
3,000 < x < 10,000 |
20% |
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15,000 < x < 50,000 |
20% |
|||
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> 10,000 |
20% |
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> 50,000 |
17% |
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1.4 Establish additional criteria specifying that where companies to be listed on SET and mai undertake any acts that will cause their free float distribution to fall below the new listing thresholds immediately upon trading commencement, such companies shall be deemed non-compliant with the free float requirements applicable to new listings.
2. IPO criteria:
Revise the tier structure by basing the classification of listed companies on market capitalization instead of paid-up capital in alignment with the free float requirements and establish a minimum IPO requirement of 20 million shares.
|
Current |
|
Proposed |
|||
|
Paid-up Capital (THB Million) |
Minimum IPO Share Percentage |
|
Market Capitalization* (THB Million) |
Minimum Percentage |
Minimum IPO Shares |
|
< 300 |
20% |
|
< 1,500 |
20% |
+ 20 million shares |
|
300 < x < 500 |
15% |
|
1,500 < x < 5,000 |
15% |
|
|
> 500 |
10% |
|
> 5,000 |
10% |
|
Remark: * Market capitalization equals the IPO price multiplied by the number of listed shares.
The public consultation aims to obtain valuable opinions from stakeholders on the proposed regulatory amendments. The consultation document and relevant details are available on the SET website at https://www.set.or.th/en/rules-regulations/market-consultation under "Revision of New Listing Rules: Distribution of Minority Shareholders (Free Float) and Initial Public Offering (IPO)." Please share your feedback via the link https://forms.gle/R6gkN9C5XMmHEbEe9 by June 25, 2025.
