The Popularity of Thai IPOs

Written on Nov 28, 2012

Apart from the tedious stuffs in developed countries, let’s see what happened in such a developing country like Thailand that should be called WOW. Yes, I am talking about Thai IPO performance (see attached). Almost all new shares this year have seen their prices skyrocket by up to 200% on their first days of trading. In addition, for five years, IPOs have provided an average return on first-day trades of around 148%. Wow! SET EVP Chanitr cited the reason that one of the key factors driving the popularity of Thai IPOs is the undervalued prices compared to those in regional markets. “We, this year, have been among the world’s best performers in aspects of returns, earnings growth, and IPO appearance.” This also reflect positive sentiment, investor confidence, but, on the other hand, an inefficiency of the Thai market too.

Market view: The SET is likely to decline today as concern about progress in Washington budget negotiations overshadowed a European agreement on Greece aid and a better-than-forecast report on durable goods. Couple of lucky numbers, 1313, is still strong resistance for the time being. Nothing else matters - except a surprise cut from the MPC decided later today. Stocks will hence most likely muddle through until we come to some solution of the cliff.