KEY POINTS
- BOI, SET, and SEC sign MOU to support target entrepreneurs in raising capital and listing on the stock exchange efficiently
- The BOI to IPO program opens pathways to the capital market for BOI-promoted entrepreneurs, particularly those in 10 New Economy industries, while driving existing listed companies to leverage BOI privileges to enhance competitiveness and sustainably propel Thailand toward a New Economy
The Thailand Board of Investment (BOI), the Stock Exchange of Thailand (SET), and the Securities and Exchange Commission (SEC) jointly signed a Memorandum of Understanding (MOU) on promoting capital raising for target enterprises under the BOI to IPO program, supporting businesses, particularly in 10 New Economy industries, to grow and access capital market funding efficiently. The signing ceremony was witnessed by Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, and BOI Board Chairman, who delivered a keynote address on “BOI to IPO: Driving Thailand’s New Economy through Investment-led Growth.”
Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas stated that Thailand is at a critical juncture in its economic restructuring, amid technological change, global supply chains, and competition to attract investment in industries of the future. The government has therefore accorded priority to the Investment-led Growth strategy, using investment as an engine to build new growth potential for the nation. The objective, however, is not simply the volume of capital attracted; it is to ensure that such investments create “value” for Thailand through bringing technology and innovation into the country, creating high-skilled employment, developing Thai human capital, and integrating Thai entrepreneurs into the supply chains of modern industries.
BOI to IPO thus serves as an important mechanism linking investment promotion policy with the capital market, enabling New Economy businesses that have invested and established operations in Thailand to grow and continuously expand from Thailand as their base. At the same time, it channels capital within the Thai economy toward high-potential businesses, and helps the structure of Thailand’s capital market better mirror the new shape of the Thai economy.
“BOI to IPO is not just a measure to help companies access the capital market; it is part of a strategy to ensure that investment creates value for Thailand in the long term. We are not simply looking to attract technology or New Economy companies to establish a base in Thailand; we want to see these companies grow, expand their businesses, develop technology and talent from Thailand, and build a stronger economic ecosystem. When investment promotion and the capital market move in the same direction, investment will not stop at the establishment of a factory or the start of a project, but can, in the long run, build into business growth and new capabilities for the nation,” said Ekniti.
BOI Secretary General Narit Therdsteerasukdi stated that the BOI to IPO collaboration integrates the tools of all three agencies, with the BOI providing additional incentives, while the SET and SEC support companies in preparing for and completing the listing process on the SET or the Market for Alternative Investment (mai).
“The BOI to IPO initiative links investment promotion policy with Thailand’s capital market, enabling high-potential companies to raise capital domestically to support their continued expansion while strengthening their contribution to Thailand’s long-term economic development. It also creates opportunities for Thai investors to participate in high-growth businesses, while listing requirements oblige companies to strengthen their corporate governance and transparency. This helps ensure that BOI-promoted investments grow sustainably alongside Thailand’s economy,” said Narit.
Thailand has well-established success stories of foreign companies that have invested in the country, established production bases, and subsequently listed on Thailand’s capital market, including Delta Electronics (Thailand) PCL and Cal-Comp Electronics (Thailand) PCL. The BOI to IPO initiative builds on these achievements, particularly among New Economy companies, enabling them to raise capital to support their expansion in Thailand and use the country as a base for global market growth. Companies will receive additional incentives on top of their existing ones. New Economy companies certified by the SET will be eligible for either an additional three-year corporate income tax exemption, or an additional 50-percent reduction for five years. General companies will be eligible for either an additional two-year exemption, or an additional 50-percent reduction for three years, depending on the type of business activity.
SET President Asadej Kongsiri stated that the BOI to IPO is a critical component in concretely linking investment promotion mechanisms with Thailand’s capital market, driving New Economy entrepreneurs toward stock exchange listing. This follows SET’s revised listing criteria enabling BOI-promoted entrepreneurs to list more efficiently and expeditiously, with listing-related expense support from SET and the Capital Market Development Fund (CMDF). SET and SEC are also piloting a streamlined IPO process to reduce the timeframe. SET is confident this collaboration will enhance the attractiveness of Thailand’s capital market and serve as a key driver for Thailand’s sustainable transition to a New Economy.
Under the new promotional listing criteria, the SET will lower the minimum market capitalization requirement for BOI-promoted companies seeking to list on the stock exchange. For companies applying to list on the SET, the threshold will be reduced to at least THB 3 billion from THB 7.5 billion, while those seeking to list on the mai will see a minimum market capitalization of THB 1 billion, down from THB 2 billion. The revised criteria are intended to make the listing route more accessible to BOI-promoted businesses and encourage more qualified companies to enter Thailand’s capital market.
SEC Secretary-General Pornanong Budsaratragoon stated that the SEC is committed to developing a capital market ecosystem conducive to fundraising for high-potential companies, particularly New Economy businesses, which are instrumental in enhancing Thailand’s competitiveness and driving its long-term transition toward new growth. Cooperation under the BOI to IPO initiative will help connect BOI-promoted entrepreneurs with the capital market, enabling them to prepare for and access capital market funding efficiently. The SEC is ready to work closely with the BOI and the SET to drive the initiative toward concrete outcomes, while streamlining the IPO approval process and guidelines to enhance efficiency and align them with international standards through a disclosure-based approach that emphasises complete and sufficient information for investor decision-making. The SEC will also promote the readiness of entrepreneurs and relevant stakeholders to enhance corporate internal controls. These efforts will enable quality companies to enter the capital market efficiently and appropriately, while maintaining investor protection and confidence in Thailand’s capital market.
New Economy businesses span 10 target industries: Advanced Agriculture & Food; Biofuels & Biochemicals; Medical for Future; Creative Tourism; Next-Generation Automotive; Aviation & Logistics; Digital & e-Commerce; Smart Electronics; Robotics; and Technology & Innovation, all key drivers propelling Thailand toward a high-value, sustainable economy.
