Economy
Stock Exchange of Thailand Proposes 'Dual Class Share' to Attract Family Businesses
The Stock Exchange of Thailand is pushing for legal amendments to allow 'Dual Class Shares,' aiming to help family-owned businesses raise capital without losing management control.
At the '4th SET Annual Conference on Family Business,' Professor Kittipong Urapeepatanapong, Chairman of the Stock Exchange of Thailand (SET), announced a strategic push to amend regulations regarding 'Dual Class Shares.' This proposed change is designed to grant original owners increased voting rights, effectively addressing concerns that raising capital through the stock market might lead to a loss of management control.
According to SET data, family businesses are the backbone of the Thai capital market. Out of 843 listed companies, 705 are family-owned, representing 84% of the total. These firms account for 10.9 trillion baht of the market's 20.15 trillion baht total market capitalization. The SET hopes that by implementing this structure, they can encourage a new generation of family-run enterprises to list on the exchange within the next one to two years.
For residents and investors, this move signals a potential shift in the composition and governance of Thailand’s largest companies. While this initiative aims to strengthen the economy by integrating more family businesses into the public market, the actual legislative timeline and the specific conditions of the proposed share structure remain to be confirmed. Observers should monitor future parliamentary discussions to see how these regulatory changes progress.
