MAI sees IPO surge in remainder of 2018

IPOs in the second half of 2018 are expected to accelerate as 12 companies are poised to launch IPOs later this year, says the Market for Alternative Investment (MAI).

MAI president Prapan Charoenprawat said the index targets around 15 companies launching their IPOs this year, after only two firms listed on the bourse in the first half, with a third planned for this month.

Total fundraising on the MAI this year is projected at 5 billion baht, with total market capitalisation anticipated at around 20 billion, said Mr Prapan.

The two newly listed firms are Chaya Group Plc and Asia Biomass Plc, with DOD Biotech Plc poised to be the third listed company on the MAI this year.

Mr Prapan said the Stock Exchange of Thailand (SET) and the MAI support startup businesses by offering training and consulting programmes together with cooperation with other public organisations to prepare for listings on the bourse in the future.

Normally, the listing process for startups takes at least five years to complete because they have to prepare business operations and comply with financial accounting standards.

However, the MAI expects around 10 startups supported by the SET to have the potential to list over the next two years, whereby two of these companies could launch IPOs on the MAI during this timeframe, said Mr Prapan.

“The SET and the MAI will continue providing training and consulting programmes for Thai startups, as they can continue their growth and list on the bourse in the future,” he said.

He said the MAI plans to seek sponsorships for startups, be they venture capital, angel funds, or other professionals to contribute to the programmes since the SET and the MAI have limited skills in supporting new tech startups.

The bourse will also host the MAI Forum 2018 on July 1 and there are more than 100 companies scheduled to present their business strategies at the event.