SET Executive Vice President Ms. Sopawadee Lertmanaschai disclosed that in 2005, focus will be placed on improving listed companies’ liquidity and potential, so that the overall Thai market will become more liquid and more attractive to investors.
“The SET will be providing counsel on employing financial tools, such as splitting their stock and issuing stock dividends, to improve the companies’ liquidity. We expect at least 50 listed companies will be interested in using these financial tools; in 2004, 55 companies opted for stock splits or stock dividends,” Ms. Sopawadee said.
The SET will provide information about these alternatives to listed companies as well as hold activities to promote a greater understanding in the uses of financial tools for general benefits and increasing trading liquidity.
Regarding its strategy to increase the number of listed companies, the SET’s marketing team will meet with potential companies to provide advisory assistance. Numerous seminars will also be held to help them better prepare for listing. Joint activities with the mai’s alliance partners will help expand the mai’s base of target companies to the members of the SET’s alliances as well. These marketing activities will be held continuously throughout the year.
She continued, “There were a total 50 new listings in 2004. Thirty-six companies have been listed on the SET (which was higher than the target of only 32), while the remaining 14 firms were listed on the mai. The amount of funds raised through initial public offering (IPO) was approximately THB75,746 mln., which accounted for THB233,200 mln. worth of market capitalization calculated at their IPO prices. It is expected that, in 2005, there will be about 100 potential companies to list, of which 60-70 will be on the SET and about 30 on the mai.
Concerning the state-owned enterprises’ listings, there were two listed in 2004—the Airports of Thailand Pcl. (AOT) and MCOT Pcl. (MCOT). TOT Corporation Pcl. and CAT Telecom Pcl. are the two best potential listings for 2005. Their additions would increase the total market capitalization by approximately THB125,000 – 150,000 mln. (approx. USD3,125–3,750 mln.). As for the total amount of funds raised through the capital market, it is projected that companies will raise about THB72,000 mln. (approx. USD1,800 mln.) in 2005. The total funds raised in 2004 stood at THB65,000 mln. (approx. USD1,625 mln.),” the SET EVP said.
