Investors to spend more on IPOs next year, say experts

Investors to spend more on IPOs next year, say experts

By The Nation

Initial public offerings (IPO) will become more popular with investors next year, experts said recently.

Prasert Tantayawit, managing director of investment banking for Maybank Kim Eng Securities, said investors are paying attention to IPO shares as the stock market is moving into positive territory.

“Businesses related to aviation and retail have postponed plans to launch IPO shares owing to the Covid-19 impact, but we believe they will start raising funds once the pandemic is resolved,” he said.

“Meanwhile, businesses related to healthcare, construction and industrial estate which have been able to escape the Covid-19 fallout are ready to launch their IPO next year.”

He added that many leading Thai firms plan to expand into neighbouring countries next year.

“Recently, Maybank Kim Eng Securities became an adviser for SCG on the acquisition of a Vietnamese company," he added.

SCB Securities’ director Veena Lertnimitr said companies aiming to launch an IPO next year will attract more investors to the stock market, especially if they are companies related to digital platforms, e-commerce or branding focused food businesses. She added that five such firms will be listed in the stock market next year.

"Most companies that aim to launch an IPO next year have authorised capital of over Bt300 million, while some may need to improve their business plan to deal with the post-Covid-19 era," she said.

Source: https://www.nationthailand.com/business/30400249