SET pushes Public Company Act amendment to attract foreign capital

Prachachat•Economy•1d ago

Reader Briefing

The Stock Exchange of Thailand is pushing to amend the Public Company Act to introduce Dual-Class Shares and Golden Shares to increase market liquidity and attract foreign investors.

•The Stock Exchange of Thailand (SET) is proposing amendments to the Public Company Act regarding Dual-Class Shares and Golden Shares.
•The Ministry of Finance has already accepted the principles for consideration.
•The measures aim to increase Free Float and accommodate institutional and foreign investors, including MSCI index funds.
•Kittipong Urapeepattanapong suggests the SET Index could reach 2,000 points within 2-3 years if New Economy companies enter the market.

Overview

•The Stock Exchange of Thailand is pushing to amend laws related to public companies to allow listed companies to issue Dual-Class Shares (DCS).
•Dual-Class Shares would allow different voting rights for different share types while maintaining equal dividend returns.
•The Ministry of Finance has received the principles for the amendment, but it must still pass through the legal amendment process.
•The Stock Exchange of Thailand has proposed Golden Shares for entities with high government ownership to allow the state to reduce its holding while maintaining oversight of key matters.
•Increasing Free Float and introducing New Economy companies are viewed as factors to increase the size and liquidity of the Thai stock market.
•Higher Free Float is intended to better support investments from large funds and foreign investors.
•Kittipong Urapeepattanapong stated that the SET Index has the potential to reach 2,000 points in 2-3 years if supporting factors and new supply are present.

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Source: Prachachat (Original)

Key Quotes

Kittipong Urapeepattanapong

"Today, general shares are 1 share 1 vote, but if there are two levels of shares, it could be 1 share 5 votes, while returns or dividends can still be set equal."

วันนี้หุ้นทั่วไปคือ 1 หุ้น 1 เสียง แต่ถ้ามีหุ้น 2 ระดับ อาจเป็น 1 หุ้น 5 เสียงได้ ขณะที่ผลตอบแทนหรือเงินปันผลยังสามารถกำหนดให้เท่ากันได้

Kittipong Urapeepattanapong

"If everything stabilizes and new supply emerges, it should be possible within 2-3 years if New Economy enters."

ถ้าทุกอย่างมันนิ่งแล้ว มี Supply ใหม่ ๆ ขึ้นมา ก็น่าจะเป็นไปได้ ภายใน 2-3 ปี ถ้ามี New Economy เข้าไป

Key Entities

Organization

Stock Exchange of Thailand(ตลาดหลักทรัพย์แห่งประเทศไทย)ℹ️

The organization pushing for amendments to the Public Company Act to increase market liquidity.

Ministry of Finance(กระทรวงการคลัง)ℹ️

The government body that has received the principles for the legal amendments for consideration.

MSCIℹ️

A global index provider whose funds are targeted by the increase in Free Float.

Person

Kittipong Urapeepattanapong(กิตติพงษ์ อุรพีพัฒนพงศ์)

The Chairman of the Stock Exchange of Thailand.

Law

Public Company Act(พ.ร.บ.มหาชน)

The law being proposed for amendment to allow Dual-Class Shares and Golden Shares.

Policy

SET Indexℹ️

The index of the Thai stock market which is projected to potentially reach 2,000 points.