Page 33 - SET TH l Press Esc to Exit

31
Exchange Function: five strategies to match the right financial opportunities for
businesses and investors.
1) Empowering businesses
The SET focuses on working proactively with business partnerships in the government and private sectors to affirm SET’s role
as a major source for fundraising to support expansion of business groups, which is the foundation for the strength of Thai
economic system.
In 2012, the SET concentrated on increasing the number of listed firms with sizable operations and high quality, streamlining
regulations for fresh products and new activities to support the new forms of securities listing, such as infrastructure funds, real
estate investment trusts (REITs) and Thai holding companies having core investments overseas.
SET has improved rules and regulations of listing by making them more flexibile to be in line with the economic environment
and achieve regional standards. For instance, SET issued listing regulations for renewable energy power plants and Thailand-based
holding companies with core investments overseas to increase opportunities for such firms to mobilize funds from the Thai capital
market for expansion. Also, SET issued regulations to list medium-sized companies with a market capitalization of no less than THB
5 billion based on SET’s market capitalization rule. In addition, SET promoted mergers and acquisitions as a national agenda item
to strengthen businesses, and actively promoted investor relations activities of listed firms to make available comprehensive,
accurate and updated information for investors, further enhancing the fund mobilizing capacity of listed companies.
In 2012, eight companies conducted initial public offerings and listed on SET, while ten were listed on Market for Alternative
Investment (mai), along with six real estate mutual funds. One company was listed by reverse takeover. As a result, in 2012 the
stock market’s size increased by THB 115.77 billion at IPO prices, the highest level in three years, ending the year with a market
capitalization of THB 186.03 billion, an increase of 60.69 percent from their IPO prices.
In addition, SET has placed high importance on continually developing the positive relations with neighboring governments
and stock markets to strengthen the regional capital markets, especially in the Greater Mekong Sub-region, which is enjoying
economic growth with high demand for fundraising. These neighboring countries include the Lao People’s Democratic Republic,
Socialist Republic of Vietnam and the Republic of the Union of Myanmar. SET has signed agreements to support improving expertise
in formulating and implementing rules and regulations, and promoting the development of the capital market in other ways,
including its personnel, securities business professionals, investors and other participants.
The year 2012 demonstrated the important role of the Thai stock market in enhancing the capacity of businesses to raise funds
based on their fair market values and to use financial instruments to add value to their operations. The stock market also supported
efforts to reduce obstacles and promote mergers and acquisitions (M&A) to strengthen companies. As a result, in 2012, THB 257.94
billion was raised in the secondary market, the highest level in 10 years, by using 116 financial instruments.