IPOs in a Global Rout: Thailand Bags $2 Billion in October Alone

By Joyce Koh and Anuchit Nguyen

 

>> Thailand has emerged as an unlikely oasis for listings

>> Low interest rates and flush local liquidity are helping

 

Investors are snapping up first-time share sales in Thailand despite the rout in global equity markets

 

In October alone, Thai firms and the country’s government raised $1.95 billion through initial public offerings, the most for a single month since 2013, according to data compiled by Bloomberg. That’s even as the equity rout derails listings around the world, from Spain to Hong Kong to India.

 

“You have a huge amount of local liquidity that is chasing every single penny of return,” Tibor Pandi, Citigroup Inc.’s country head for Thailand, said in an interview in Bangkok. “That has created a local microcosm for IPOs and local bonds -- kind of a universe for themselves.”

 

Thai financial markets have been comparatively resilient due to factors such as economic expansion and a current-account surplus, according to DBS Group Holdings Ltd. The Bank of Thailand has skirted a global wave of monetary-policy tightening, keeping interest rates close to a record low to support the economy. It predicts growth of more than 4 percent this year and in 2019.

 

Full story: https://www.bloomberg.com/news/articles/2018-10-24/ipos-in-a-global-rout-thailand-bags-2-billion-in-october-alone

 

-- Bloomberg 2018-10-23

 

Thai IPO's boasting does not mention dire key industry shortcomings & follow up.

 

Thai IPO's are often offered  to foreign investors with no English language prospectus.  Even while foreign institutions do get these, yes in the English language.  Offering IPO's to any investor with no readable prospectus given before subscribing is considered a serious industry no-no in most countries' stock markets -and shows regulatory SEC shortcoming.  Disseminating readable IPO prospectuses before offering IPO subscriptions is for very good reasons a paramount rule in this industry.

 

Furthermore,  post IPO's fanfare there is no investor performance follow up,  i.e. change in percent price tabulation, such as listed by various issuing brokers, on how previous IPO's have fared in time,  post the first days of speculative euphoria.  In my observation, many if not most in fact dwindle in mkt. price to below their IPO price,  weeks or months after the initial speculative enthusiasm dies out.   But its not shown anywhere.   So "where is the beef?", or acclaimed & sustained IPO legitimate investor success?  Most other stock market around the world publish such IPO follow up performance, as listed by brokers, so investors can gauge how successful these were, post the initial euphoric trading days.

 

The Thai broker industry, nor any other source, to my knowledge, do not publish how previous IPO's have fared looking back over time, since their IPO offering price, Why?    An important disclosure shortcoming as investors just cannot success, post the initial IPO price spike.