Thailand is unlikely to see many new public share sales in the "next few years" in the absence of listings by either overseas or state-owned companies, the head of the Securities and Exchange Commission said.
"Foreign companies have no interest in listing their local units here while there won't be any share sales by state-owned companies in the near future," said SEC Secretary-General Thirachai Phuvanatnaranubala.
There were seven initial public offerings in Thailand this year, compared with 11 in 2008, according to exchange data. Companies are speeding the pace of share sales due to "strong" demand and prices, Stock Exchange of Thailand President Patareeya Benjapolchai said June 12.
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"There are very few remaining prospects for new public share sales on the Thai market as almost all large Thai companies are listed," said Thirachai.
Former prime minister Thaksin Shinawatra, ousted by a military coup in 2006, accelerated the share sales of state- owned companies such as PTT Pcl, Airports of Thailand Pcl and MCOT Pcl to lure foreign investors and boost the market capitalisation. prime minister Abhisit Vejjajiva said this month he wouldn't support the privatisation of public utilities.
Under Thaksin's administration, Thailand's initial public offerings jumped to as many as 50 companies in 2005 compared with only four companies in the previous year, according to data compiled by Bloomberg. PTT, the country's biggest oil company, in 2001 raised $734 million in the country's largest-ever initial public offering.
'Bleak' Outlook
"The outlook for Thailand's stock market is relatively bleak over the next two to three years due to the lack of new products," said Kongkiat Opaswongkarn, chief executive officer of Asia Plus Securities Pcl, the nation's second-biggest stock brokerage by trading volume.
Thirachai also said some of the country's 38 licensed brokerages will probably consolidate when the regulator removes a cap on commission fees next year, said Thirachai.
"Competition will be much more fierce after the removal of the brokerage fee cap," he said.
Syrus Securities Pcl, the fifth-smallest brokerage by trading volume among 38 licensed members, merged this month with Finansa Securities Co. Seamico Securities Pcl combined with KTB Securities Co. to become KT Seamico Securities Co.
http://www.bloomberg.com/apps/news?pid=20601208&sid=aSh4FC7tK4NI
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