SEC Joins Forces with BOI and SET to Open BOI to IPO Pathway, Drawing New Economy Businesses into the Capital Market
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The Securities and Exchange Commission (SEC), together with the Board of Investment (BOI) and the Stock Exchange of Thailand, has launched the BOI to IPO pathway to connect high-potential businesses, especially New Economy businesses and small and medium-sized enterprises, to fundraising in the capital market. Under this pathway, the Stock Exchange of Thailand has revised its securities listing criteria by adding a special channel, the Special Track, for companies promoted by the BOI and the EEC, setting a minimum market capitalisation of 3 billion baht for the SET and 1 billion baht for mai, while companies not promoted by the BOI or EEC face a market capitalisation requirement of 5 billion baht for the SET and 1.5 billion baht for mai. The focus is on having revenue from operations in target industries as the primary revenue source in the most recent year. The SEC is also shifting its review approach toward a more disclosure-based system and aims to cut the IPO review period to roughly 70 to 100 days, down from an average of 147 days. The approach is currently being trialled through a sandbox before being applied generally. At the same time, the sequence of work in the period before an application is submitted will be adjusted, for example by having the financial advisor summarise the facts and key issues, and having the CFO explain policies and accounting treatment for significant transactions, to ensure companies meet the criteria before filing their applications.