Chairwoman of the Capital Market Opportunity Center (CMOC) and the Market for Alternative (MAI), Ms. Sopawadee Lertmanaschai, disclosed that the MAI will celebrate its 2nd anniversary on September 17, 2003. "From 2001 until yesterday (September 15, 2003), trading on the MAI has increasingly gained attention from investors based on the daily average turnover that rose more than 10 fold from less than 10 million baht to more than 100 million baht at present. In 2001, the figure stood at 8.13 million baht while in 2003, especially in July, August, and September, daily turnover were recorded at 101.40, 155.26, and 124.25 million baht respectively."
The MAI Index has significantly moved upwards from September 2, 2003, the day the index was first calculated at 100 points, to 270.55 points on September 15, 2003 accounting for a 170.55% increase.
"Investors pay more attention to the MAI partly because of improved corporate earnings. In 2002, the MAI listed companies recorded 991.74% increase in profits from 2001, or nearly 1,000%. The companies turned net losses of 16.70 million baht to 148.92 million baht in profits. And, by the first half of 2003, companies on the MAI posted total profits worth 60 million baht," Ms. Sopawadee said.
The Chairwoman of CMOC and MAI noted that: "Throughout the two-year period, the MAI has been focusing on improving the quality of companies in terms of the array of sizes and business sectors. The MAI has cooperated with over ten partners, including the Federation of Thai Industries, Thai Chamber of Commerce, the industrial Promotion Department, the SME Funds, the Bank for Small and Medium Enterprises, the Small Industrial Finance Corporation, and the commercial banks, to persuade members of these organizations to raise funds through the MAI. As of September 15, 2003, the MAI had a total of nine listed companies with 6,374.47 million baht worth of market capitalization. This jumped 1,393.02% from the 2001-end of 426.95 million baht."
Companies have raised a total of 1,028 million baht worth of funds through the MAI. Matching Studio Plc. used the proceeds to buy new machinery so that it could expand its advertising production capacity by 20%. Siam Future Development Plc. is another company to have successfully raised funds and launch its "open department store", which attracts a lot more service users. There were two companies that moved from the MAI to the SET--Traffic Corner Holdings Plc. and Daidomon Group Plc.
"The MAI is a source of fundraising for the medium-sized businesses with strong determination to grow, because there is no loan-interest burdens associated with it. It also enable companies to manage their finances more flexibly hence they can expand without limitations. Raising funds through the MAI also improves the company's profile and image making it a great value added to the business," Ms. Sopawadee said.
Presently there are three companies in the process of seeking listing approval and will present their IPOs to the public. They are Master Ad Public Co., Ltd., Thai Mitsuwa Public Co., Ltd., and R.K. Media Holding Public Co., Ltd. There will be a total of 10-15 listed companies on the MAI in 2003, plus an additional 30, which are presently appointing their financial advisors and planning to undergo the listing process.
The Chairwoman of CMOC and MAI added that: "What the MAI is headed for is to be a true long-term source of funds for SMEs. It will collaborate with other partners and professional organizations to help prepare the SMEs starting from their very first steps. The MAI provides a dedicated team willing to give guidance to all SME entrepreneurs. We believe that the MAI is a place for entrepreneurs with long-term vision as well as investors wishing to be their prosperity partners."
"In addition, the target number of companies on the MAI in 2004 is being proposed in the plan submitted to the executive board and the SET board of governors for further approval."
