BANGKOK – Thailand plans to establish a dual-class share structure to entice more companies to list on the local exchange, a move designed to ease the concern of founders about diluting their control and end a lean patch in new listings.
The proposed move, expected to be implemented in 2027, also aims to satisfy institutional investors who want greater access to the nation’s top companies, according to Kitipong Urapeepatanapong, chairman of Stock Exchange of Thailand (SET).
The changes to Thailand’s public company law will enable listed firms to issue different classes of shares with unequal voting rights, he said.
A dual-class share structure would also put Bangkok in the same league as markets like Hong Kong, broaden its pool of listed companies while deepening market liquidity amid competition from regional financial centers.
“From my discussions with a number of family-owned businesses, many don’t want to list, or when they do, they sell only a small amount of shares because they want to protect themselves from a takeover,” he said in an interview.
Thai companies have raised about 700 million baht (S$26.7 million) through initial public offerings so far in 2026, down 95% from 2025 and on track for the lowest annual total since the exchange began providing data in 2003.
“Thai companies have delayed their IPOs as the conflict in the Middle East and high fuel costs weigh on the economic outlook,” SET president Asadej Kongsiri said recently.
“We have a strong IPO pipeline. If the war ends later this year, we expect 2027 to be a very busy year for IPOs.”
Companies classified as family-owned business represented 705 of the 843 companies listed on the Thai stock exchange as at July.
The family companies had a combined market capitalization of 10.93 trillion baht, accounting for 54% of the total market value of Thai-listed companies.
Some Thai companies offer only a small portion of their shares to the public, list on foreign exchanges that offer dual-share structures or avoid going public altogether, Kitipong said.
“We need to provide this option similar to other regional rivals if we want to attract family-owned businesses in Thailand to list,” he said.
“It would also help increase liquidity, which has been a major complaint among international funds.”
Foreign investors say that some of the nation’s prime listed companies do not have enough free float for them to buy and trade shares, Kitipong said.
The stock exchange has been working with the Finance Ministry, Securities and Exchange Commission and other agencies on the dual-class share amendment, which is expected to be passed by the Parliament in 2026, Kitipong said. BLOOMBERG
