Thailand, only surpassed by China, is the region’s leading country initial public offerings (IPOs) – with the second highest total in IPO investment, totalling over US$4.96 billion putting the country ranked 2nd behind only China if excluding cross-listed shares from other bourses such as infrastructure funds (IFFs).

Soraphol Tulayasathien, senior executive-vice president of the Stock Exchange of Thailand (SET) noted that there was a total of 26 deals, excluding IFFS and REITS, which is below the 28 recorded in the previous year, but still showing fantastic growth from investors into the country.

Thailand’s market capitalisation of newly launched IPOs this year surpassed an incredible 555 billion Thai baht as of the 25^th of Dec, recording an all-time high, noted Pakorn Peetathawatchai., President of the SET.

He said there were more food science, tech and animation firms making the list this year.

“IPOs are a major growth driver for the SET total market this year,” he said.

As officially reported by the SET, China topped the chart, raising IPOs with $65.6 billion, followed by Thailand, then India with $4.52 billion.

Via Nikkei Research

If we were to bring cross-listed stocks into the reporting, such as the share offerings of US-based, China-based or other foreign-based listings are included, Thailand was still ranked third, only overtaken in the standings by behind Hong Kong (with $44.3 billion, but with non-cross listings consisting of only $631 million).

This shows investors a promise of more good things to come in Thailand’s financial and investment landscape, with many investors predicting a strong return of the markets once global travel resumes. Many of the IPO listings focused on the emerging and continued growth in Thailand’s markets, including the headline success of the Thai branch of the HK based logistics and courier company, Kerry Express. The Thailand subsidiary of Hong Kong-listed Kerry Logistics Network had a strong entry on the Stock Exchange of Thailand, the delivery service raised an impressive 8.4 billion Thai baht, selling 300 million shares, or 17.2% of all issued shares after the IPO.

“Thailand’s IPO market continues to show its growth potential as one of the stronger IPO markets in Southeast Asia,” noted Deloitte Thailand’s disruptive events advisory leader,  Wilasinee Krishnamra. She shared her insights and commented that this was predominantly ” driven by homegrown companies and fuelled by increasing investor interests in companies focused on consumer business“.

Investors maintain a desire for IPO shares, giving a boost to the Thai market over its peers in the South East Asian region. They feel that the region, although showing volatility due to ongoing protests and political uncertainty, shows promise for a strong recovery in the new year, and Thailand’s IPO offerings reflect this.

The question that now arises is where will Thailand see the most growth post pandemic, and what will be the industries that re-emerge as leaders? For many the REIT and general real estate market shows strong promise for a rocketing return. This is down to, from the pattern of return, investors being allowed back into the country prior to tourists. This allows for those willing to capitalise on the dips in the market and secure their investments now, to reap positive returns when the international investors return to the region.

We recently shared an article on Thailand’s new Special Tourist Visa on our Insights Blog, which takes a look at the opportunity in such initiatives beginning to be implemented by the Thai Government. Plus, we reflect on the promise this brings to the country’s real estate investment landscape.