The Stock Exchange of Thailand (SET) is exploring the adoption of a dual-class shares structure in response to growing international investor interest, particularly concerning the influence of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) on the SET Index, according to Paiboon Nalinthrangkurn, CEO of TISCO Securities and Chairman of FETCO.
The move aims to increase the proportion of shares held by minority shareholders (Free Float), boosting market liquidity while allowing major shareholders or founders to retain control through super-voting shares.
Dual-class shares enable the issuance of two types of common stock: super-voting shares with greater voting rights, and ordinary shares with standard voting rights. This system is widely used among global technology giants and is gaining traction in regional markets such as Hong Kong, Singapore, and Indonesia. Its benefits include safeguarding against hostile takeovers and fostering long-term innovation, but it also raises corporate governance concerns, particularly regarding the concentration of voting power.
Paiboon emphasized that issues related to heavily weighted stocks in benchmark indices—such as DELTA’s significant impact on the SET Index—are not unique to Thailand, with similar patterns observed in South Korea, Taiwan, and the United States. He highlighted the importance of developing alternative indices and ensuring transparent market structures so investors can make informed decisions.
The SET has already implemented measures such as free-float adjusted indices and stock weighting cap in certain benchmarks. However, Thai law currently prohibits listed firms from issuing common shares with different voting rights, following the Public Limited Companies Act B.E. 2535.
Bualuang Securities has raised its target price for DELTA to THB 440, citing the company’s robust mid-to-long-term growth prospects in AI infrastructure and data centers. Despite a temporary slowdown in 2Q26 due to electronic component shortages, DELTA’s order book and backlog remain strong. Net profit for 2Q26 is projected at THB 8.5 – 8.8 billion, up 80 – 90% year-on-year but down about 5% from the previous quarter, with supply-side constraints seen as temporary.
Looking ahead, Bualuang expects DELTA to benefit from the industry’s transition to 800VDC Liquid-Cooled AI Rack systems, boosting its total addressable market, as Asia Pacific data centers—DELTA’s key customers—accounted for roughly 25 -27% of global data centers’ demand.
The broker has revised its 2027 – 2028 net profit forecasts up by 10%, to THB 57 billion and THB 69 billion respectively, exceeding market consensus. While DELTA’s target price was set at THB 440 per share, near-term stock performance may be weighed down by 2Q26 earnings softness and supply concerns, potentially prompting a retreat to the THB 275 level before the growth outlook drives renewed investor interest.
