SET Proposes Dual-Class Shares to Boost Free Float and Index

MGR Online•Economy•1d ago

Reader Briefing

The Stock Exchange of Thailand is proposing an amendment to the Public Company Law to allow Dual-Class Shares to increase liquidity and attract global investors.

•The Stock Exchange of Thailand is proposing the use of Dual-Class Shares to allow founders or the state to maintain control while reducing shareholding percentages.
•The long-term goal is to support the SET index in reaching 2,000 points.
•The proposal aims to increase Free Float and liquidity, specifically for large-cap stocks.
•The Stock Exchange of Thailand is adjusting criteria to attract New Economy companies into the capital market.

Overview

•The Stock Exchange of Thailand is proposing an amendment to the Public Company Law to allow listed companies to issue Dual-Class Shares with differing voting rights.
•Dual-Class Shares would allow executives, founders, or the government to maintain control of a business even if their shareholding proportion decreases.
•This mechanism allows the government to reduce holdings in state enterprises to raise funds for economic drivers without increasing public debt.
•Kitipong Urapeepatanapong stated that increasing Free Float in large stocks will enhance the attractiveness of the Thai market to foreign investors, particularly those using the MSCI index.
•Coordination with relevant agencies to finalize the legal draft is expected to take approximately 1-2 months.
•The Stock Exchange of Thailand plans to pilot this structure with the first 5 large companies before expanding to other voluntary companies.
•The Stock Exchange of Thailand is reviewing criteria for New Economy companies, including minimum market capitalization and track record requirements, to support industries like electric vehicles, data centers, and semiconductors.
•The Securities and Exchange Commission (SEC) has shortened the IPO consideration period to no more than 70 days.

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Key Quotes

Kitipong Urapeepatanapong

"It helps increase the efficiency of public asset management, where funds from share sales can be used for investment or economic management without increasing loans."

เป็นการช่วยเพิ่มประสิทธิภาพการบริหารสินทรัพย์ภาครัฐ โดยเงินจากการขายหุ้นสามารถนำไปใช้ลงทุนหรือบริหารเศรษฐกิจได้ โดยไม่ใช่การกู้เงินเพิ่ม

Key Entities

Organization

The Stock Exchange of Thailand(ตลาดหลักทรัพย์แห่งประเทศไทย)ℹ️

The organization proposing legal amendments to allow Dual-Class Shares and adjusting criteria for New Economy companies.

Securities and Exchange Commission(สำนักงานคณะกรรมการกำกับหลักทรัพย์และตลาดหลักทรัพย์)ℹ️

The agency that has reduced the IPO consideration period to no more than 70 days.

BOI

An organization providing promotion for companies in target industries.

EECℹ️

An entity providing promotion for companies in target industries.

SET

The main stock market index and exchange aiming for a level of 2,000 points.

mai

A stock market for smaller companies being reviewed to accelerate business entry.

Live Exchange

A market for capital raising being reviewed to accelerate business entry.

Person

Kitipong Urapeepatanapong(กิติพงศ์ อุรพีพัฒนพงศ์)

The Chairman of the Board of The Stock Exchange of Thailand.

Law

Public Company Law(กฎหมายมหาชน)

The law that the Stock Exchange of Thailand is proposing to amend to allow for the issuance of shares with different voting rights.