Bangkok Life Assurance Public Company Limited (SET: BLA) could survive the auto-removed measure from the SET50 Index at the closing of today’s session as the biggest IPO this year has a flat performance so far on its first trading day.
The share price of Thai Life Insurance Public Company Limited (SET: TLI) is trading flat as of 15:06 BKK time on July 25, 2022, its first trading day in the Thai stock market after being able to raise 13.6 billion baht through the Initial Public Offering (IPO).
TLI is the prospect to be listed in the SET50 Index after the closing of its first trading day using a fast-track measure. The rule stated that a newly listed company that has a market capitalization over 1% of the total market cap of SET Index will be immediately listed in the index, thus, removing the current 50th position from the list.
Thai Life Insurance only needs 2% gain at the closing on its first trading day to raise its market cap from THB183 billion to THB186 billion, topping SET Index’s market cap of THB18.5 trillion and representing a little over 1% of the total cap.
BLA is currently in the last position in SET50. However, despite a decline by nearly 4% of its share price, the securities will not be removed if TLI could not gain some advantage before the closing of today’s session. The next re-balance will be early next year.
The only way for TLI to be listed in the SET50 Index is for the market capitalization for SET Index at the closing dropped to around THB18.3 trillion, which would allow the the current stage of TLI to enter with THB183 billion market cap, assuming that the share price closes the day at THB16.00 per share.