Thailand to Ease IPO and Foreign Listing Rules to Revamp Capital Market
Thailand is taking steps to revitalize its capital market by simplifying stock-listing procedures, aiming to enhance competitiveness and attract global investors. The move comes after the Thai benchmark stock index experienced a significant drop of over 7% in 2025, making it the worst performer among major Asian stock markets.
The Thai Capital Market Attractiveness Initiative
The "Thai Capital Market Attractiveness Initiative" is designed to bolster investor confidence and position Thailand as a leading regional fundraising hub. Announced on October 6th by the Taskforce for a Competitive and Attractive Market, the initiative seeks to address both demand- and supply-side challenges within the market.
“We need urgent actions to restore the appeal of the Thai stock market among the international investors,”
Mr. Kongsiri emphasized the need to promptly list companies in the new growth industry to attract investor interest. This move is crucial as international funds withdrew approximately US$2.9 billion (S$3.7 billion) from the Thai market.
Key Strategies for Market Revival
Several strategies are being implemented to help restore flows to the Thai market. These include:
- Streamlining initial public offering (IPO) processes.
- Simplifying foreign listing procedures.
- Attracting high-quality companies to list on the exchange.
- Scaling up the value of existing listed firms.
A Coordinated Effort for Structural Reform
The initiative reflects a collaborative effort between the government and the private sector. Pornanong Budsaratragoon, secretary-general of the Securities and Exchange Commission (SEC), noted that this coordinated approach is essential for driving structural reform and ensuring the long-term competitiveness of the Thai capital market. Future phases of the program will extend to bond markets, investment units, and a digital capital market.
Four Pillars of the Initiative
The Thai Capital Market Attractiveness Initiative is built upon four key pillars:
- Quality Demand
- Attractive Supply
- Trusted Market
- Supportive Ecosystem
The Finance Ministry, SEC, SET, and the Federation of Thai Capital Market Organisations jointly announced the project, signaling a unified front in revitalizing the Thai capital market.
| Organization | Role |
|---|---|
| Finance Ministry | Policy and Funding |
| Securities and Exchange Commission (SEC) | Regulation and Oversight |
| Stock Exchange of Thailand (SET) | Listing and Trading Platform |
| Federation of Thai Capital Market Organisations | Industry Representation |
Looking Ahead
According to Mr. Asadej Kongsiri, this collaboration is a "significant turning point," with a focus on attracting new economy businesses, enhancing transparency, and expanding investment product offerings to sustain market resilience amidst global volatility. The ease of IPO and foreign listing rules is expected to play a key role in the resurgence of the Thai stock market.
