The Stock Exchange of Thailand (SET) is reviewing free float and initial public offering (IPO) distribution requirements for new listings on the SET and the Market for Alternative Investment (MAI), aiming to enhance the Thai capital market's attractiveness as a listing venue.
The bourse seeks to remove the grace period provisions for free float compliance (for minority shareholders) applicable to large corporations, and reduce the minimum free float percentage for them from 20% to 17%.
The move is meant to encourage listings by major companies. The proposed requirement remains above the 15% threshold required to remain a listed company, the SET said in a statement issued yesterday.
The bourse also plans to revise the tier structure by basing the classification of listed companies on market capitalisation instead of paid-up capital, aiming to more accurately reflect their actual business value and establish a minimum free float requirement of 30 million shares.
"If companies wishing to list on the SET and MAI engage in any acts that will cause their free float distribution to fall below the new listing thresholds immediately upon trading commencement, they shall be deemed non-compliant with the free float requirements for new listings," the statement added.
Regarding IPO criteria, the SET plans to revise the tier structure by basing the classification of listed companies on market capitalisation instead of paid-up capital, aligning with the free float requirements, while establishing a minimum IPO requirement of 20 million shares.
"The proposed amendments aim to provide a clearer regulatory framework that aligns with international standards, enhancing the Thai capital market's attractiveness as a listing venue, while strengthening its regional competitiveness," noted the statement.
"The SET's strategic goals are to unlock growth opportunities and solidify its position as a premier listing hub for flagship domestic and international businesses."
The bourse is seeking public consultation on the proposed regulatory amendments until June 25.
The consultation document and relevant details are available on the SET's website.