Initial public offerings (IPOs) fell to the lowest amount in 13 years during the first four months of 2025, with only four companies listing on Thai bourses, attributed to sluggish investment sentiment, tighter regulatory requirements under new listing rules and broader economic headwinds.
The Stock Exchange of Thailand's (SET) revised listing rules came into effect on Jan 1, with stricter profit requirements for companies seeking to go public.
Under the new rules, companies aiming to list on the SET must report a minimum net profit of 75 million baht in the most recent year, up from the previous 30 million.
For listings on the Market for Alternative Investment (MAI), the requirement increased from 10 million baht to 25 million.
In addition, cumulative net profit thresholds for the past 2-3 years were raised. For the SET, the requirement increased from 50 million baht to 125 million, while the MAI mandates a combined profit of at least 40 million baht, compared with none in the past.
As a result, companies now need at least four years to prepare for an IPO, significantly increasing listing costs and delaying fundraising timelines.
"The market downturn, rising costs and the impact of the stricter listing criteria have prompted many companies to postpone their IPO plans," said Akekajak Buahapakdee, managing director of Capital One Partner Co, an investment consultancy.
"In this volatile environment, amid ongoing global trade tensions, it's harder for companies to raise capital at their expected valuation."
Tris Rating reported investment banking revenue at securities firms dropped by 29.5% during the first nine months of 2024, marking the third consecutive year of decline.
The value of funds raised through IPOs fell to just 19 billion baht, the lowest level in more than 13 years.
MAI president Prapan Charoenprawatt acknowledged market volatility and global trade conflicts have led some companies to defer their IPOs. However, firms in high-potential sectors aligned with current investment trends continue to receive strong interest from investors, he said.
Several companies are preparing to list in the coming months.
Upcoming IPOs on the SET comprise: Ngernturbo, MR. D.I.Y. Holding (Thailand), Atlas Energy, Masstec Link, Onsen Retreat and Spa Group, Platinum Fruits, Smothong Group, Thai Packaging Industry, Unique Plastic Industry, and ThaiNamthip Corporation.
Upcoming IPOs on the MAI comprise: Blue Solutions, Skin Laboratory, Smart TTC, Skilllane Technology, Mukdahan International Hospital, MMM Capital, Nutrition Profess, 88 (Thailand), Indigy, Laundry You, NTF Intergroup (Thailand), GP Mobility, Lightsource Group, and Thai Eastern Bio Power.
As of May 28, no new companies floated shares on the SET this year, while four have raised a combined 898 million baht through MAI listings: Bangkok Asset Intergroup (BKA), LTMH, Mother Marketing (MOTHER) and Pro Inside (PIS).