School defends stock market listing
Education before profit, owner insists
SISB Co Ltd, the operator of Singapore International School of Bangkok, has shrugged off criticism about its listing on the Stock Exchange of Thailand (SET), arguing it complies with SET and Securities and Exchange Commission rules.
Yew Hock Koh, chief executive officer of the company, insisted yesterday the company’s listing on the SET is acceptable, and the company had consulted the Education Ministry about it. The ministry did not oppose the listing, nor did it raise any concerns, he said.
He was speaking on the first day of the SISB’s trading on the Market for Alternative Investment (MAI). Its shares traded below its IPO allotment price of 5.2 baht. Its opening price fell to 5 baht.
SISB has become the first education institution to be listed on the SET this year, with an IPO of 260 million shares.
Education Minister Teerakiat Jaroensettasin on Wednesday, however, raised questions over whether SISB’s schools should still enjoy tax-exemption privileges offered them. When any school operator goes public, it becomes a profit-oriented business and should pay taxes like anyone else, he said.
Mr Yew insisted SISB is keen to contribute to Thai education and stands by its principle of putting education before business. The company is ready to pay taxes currently waived for its schools if the government agrees to change its regulations, he said.
Finance Minister Apisak Tantivorawong, meanwhile, said yesterday the tax-exemption privileges for education institutions and a school listing on the stock market are two different matters. Listed or not listed, all education institutions should be treated equally when it comes to tax exemption, he said.
As for concerns over the possibility that the schools’ tuition fees will rise dramatically after SISB listing on the stock market, Mr Yew said fees charged by SISB schools are still regulated by the Education Ministry and the company cannot simply raise them at will.
Tuition fees are in the medium range compared with all other international schools in Thailand, he said. If parents cannot afford the fees, there are 200 or so international schools in the country to choose from, he said. “Several other educational institutions are also interested in raising funds through the stock market and are looking at SISB as an example,” he said.
Democrat Party secretary-general Juti Krairiksh has petitioned the Administrative Court to suspend SISB’s listing. The court has summonsed the SEC to testify regarding Mr Juti’s petition on Dec 7.
On Wednesday, he called on Prime Minister Prayut Chan-o-cha to revise the policy that allows educational institutions to list on the stock market. On Sept 6, a group calling itself the network of people against fraud and corruption petitioned the premier against SISB’s listing. The group accused the SISB of causing more education disparity in society.