Listing a company on the stock exchange is a significant milestone for many businesses. In Thailand, there are three main stock exchanges to consider: the Stock Exchange of Thailand (SET), the Market for Alternative Investment (MAI), and the Live Exchange (LIVEx). Each exchange has its own specific listing criteria. The SET, however, has the most stringent requirements.

To list on the SET, a company must have a paid-up capital of at least 300 million baht, a net profit of at least 50 million baht over the past three years, and a net profit of at least 30 million baht in the most recent year. For the MAI, the requirements are a paid-up capital of at least 50 million baht and a net profit of more than 10 million baht in the most recent year. Lastly, the LIVEx does not have a minimum paid-up capital requirement or a net profit requirement, but companies must be registered as SMEs (according to the guidelines of the Small and Medium Enterprise Development Bank of Thailand) or be startups with funding from the private sector.

Why should companies consider listing on the stock exchange? The benefits include:

1. A source of long-term funding:

By listing on the stock exchange, companies can raise capital from the public to fund operations or expand their businesses. This gives them a competitive advantage, provides a solid financial structure, and opens up opportunities for future fundraising through other securities such as bonds or convertible bonds.

2. Enhanced liquidity:

 Listing on the stock exchange increases liquidity as the company’s shares can be easily traded. This increased liquidity attracts more investors and allows shareholders to buy, sell, or convert their shares into cash easily. It also helps determine the fair value of the shares based on market demand and can be used as collateral for loans.

3. Enhanced reputation and credibility:

Listing on the stock exchange boosts a company’s reputation and credibility. Being listed on the exchange signifies a well-performing, stable company with transparent disclosure practices. This can attract customers, partners, and other stakeholders, and increase public recognition.

4. Access to a diverse range of funding and financial instruments:

 Listed companies can access a variety of financial instruments such as convertible bonds, warrants, and dividend-paying shares, which can fuel growth and expansion. These financial instruments provide companies with greater flexibility in fundraising and executing strategic initiatives.

Additionally, listing on the stock exchange allows companies to reach a broader investor base and increase liquidity, making their shares more visible and attractive to new investors.

While the process of listing on the stock exchange can be complex, the benefits are significant. At FynnCorp Advisory, we offer comprehensive financial advisory services to guide companies through the IPO process. Our team of experts can provide tailored advice and support to help your company achieve its listing goals.