Family-owned companies account for 76% of the companies listed on the Thai stock market, accounting for half of the total market cap.

In 2567, listed companies classified as family businesses had a total revenue of 9 trillion baht, accounting for 48.5% of GDP, while 76% of the companies listed on the Thai stock market that are classified as family businesses have a market capitalization of 50% of the total market capitalization, distributed across both the SET and mai and across all business sectors.

Article by: Sumitra Tangsomworaphong, Research Department, Stock Exchange of Thailand

This study is a study of family businesses of listed companies (LCs) in the Stock Exchange of Thailand and the Market for Alternative Investment (MAI) (Thai stock market) from the shareholder list data of each listed company with the latest closing of the register during January - June 2568, totaling 850 companies.

which was found 646 Company or 76 % Of all the listed companies in the Thai stock market, they are classified as "A family business" According to the definition of family business in this study byThis group of listed companies has a total market capitalization of 50 % of market capitalization (total market capitalization)

Definition of “Family business”

Consider in the following order:

• Family members collectively hold more than 20% of the registered shares.
• Family members have administrative power.
• A family member establishes a company and the company holds more than 25% of the registered shares.
• Family members establish a company and the company holds more than 25% of the registered shares and then holds shares in other companies (affiliated companies).
• Listed companies that are affiliated or subsidiaries of listed companies that will be family businesses, ask about 4 items. However, the count of shares held will also consider indirect shareholding through the pyramid shareholding structure*, using the database from the Corpus X system of Business Online Public Company Limited.

(Pyramid shareholding structure refers to the ownership of a business by major shareholders, passing from one company to another in a vertical layer.)

Registered companies classified as family businesses 

Listed companies classified as family businesses account for approximately half of the overall market capitalization and have continued to raise capital on the Thai stock market. When considering the sustainability of the business fromBusiness age from inception to present (year 2568) Of registered companies classified as family businesses

According to this study It was found that the average age is approximately 36 Year by year, the registered company with the longest business life since its establishment until now 149 Year or approximately 3 Equal to the age of the Stock Exchange of Thailand 

As of the end of 2567, there were 642 listed companies classified as family businesses with a total market capitalization of 8.51 trillion baht, representing 50.4% of the total market capitalization of the market.Market capitalization of securities during the year 2561 2567 Of the listed companies that are classified as family businesses, the average growth rate (Compound Annual Growth Rate) per year 2.55 %

At the end of June 2568 Registered family business companies 646 The company has a total market capitalization of 6.1 Trillion baht decreased 28.3 % From the end of the year 2567 From the significant decrease in securities prices, it can be observed from SET Index decreasing 22.2 % And when compared to the total market size, family businesses have an average share. 48.2 %

in the past 10 years 77.1% of the total IPO value comes fromA family business

Over the past 10 years (2558 – 2567), there have been a total of 315 listed companies raising capital through Initial Public Offerings (IPOs) on the Thai stock market. 264 Companies from all 314 The company is a family business, think of it as 84.1 % Of companies that raise funds through activities IPO

During that time, it was a family business, or in other words, it was clear that family businesses relied on the mechanism of raising funds in the Thai stock market as a source of funds to create opportunities for business growth.

            When considering the fundraising value or IPO value during the same period, it was found that Listed companies classified as family businesses have a higher total capital raising value. 483,190 One million baht or 77.1 % of value IPO ALL
Which has the same direction asMarket capitalization (Market Cap) As of the first trading day with total value 2.24 A trillion baht or in terms of 74.7 % ของ Market Cap Total of the company IPO All during that time

It was also found that During 6 The first month of the year 2568 Family business raises funds through activities IPO 4 CompanyOf the 5 companies that did IPOs, it can be said that 80.0 % of the number of companies raising funds through activities IPO ALL The total fundraising value is 730 million baht, representing 63.5% of the total IPO value.

Throughout the study period, that is, during the year 2558 - June 2568 There are family businesses raising funds through activities IPO Included 268 Companies from all 319 Company or think 84.0 % of the number of companies raising funds through activities IPO ALL

With a total fundraising value higher than 483,920  One million baht or 77.1% of value IPO All of which have the same direction as the market value of securities (Market Cap) As of the first trading day with total value 2.25 A trillion baht or in terms of 74.7% of Market Cap Total of the company IPO All during that time     

During 2558-2567, 108 listed family businesses raised capital in the secondary market, a total of 410 times, with a total fundraising value of 351,131 million baht.

            In addition to listed companies classified as family businesses raising capital through IPO activities, Listed companies classified as family businesses listed on the Thai stock market during the year 2558 2567 Funding is raised in the stock market through the secondary market (Secondary offering) โดย 108 Company (From a total of 264 companies) Raising funds in the secondary market 410 Times with total fundraising value 351,131 million baht 

In addition, the study also found that 64 A listed company classified as a family business raised capital in the secondary market during 2 - 3 The first year of trading on the Thai stock market

When considering the growth potential of listed companies classified as family businesses from total revenue during 2560 - 2567, it was found that Total revenue of listed companies in this group has an average annual growth rate as high as 8.25 %

by fromLatest performance year 2567 of 642 listed companies classified as family businesses had total revenue as high as 9 trillion baht, accounting for 48.28% of the total revenue of all listed companies in the market, or an average annual growth of 49.37% during 2560 - 2567.

Family business profits grow more than the country's GDP.

When considering the contribution of listed companies classified as family businesses in the Thai stock market to the Thai economy, it was found that:

in the year 2567 Total revenue of listed companies classified as family businesses on the Thai stock market accounts for 48.5% of the gross domestic product (GDP). or an average of 40.5% during 2560 – 2567

can be said Family businesses play a crucial role in the country's economic development. Therefore, they should be promoted to raise funds widely to create sustainable growth.

When considering the growth of net profit and total assets of listed companies classified as family businesses during the same period, it was found that: Total assets of listed companies classified as family businesses have grown very high, averaging 100% per year. 9.63% reflects that raising capital in the Thai stock market helps family businesses to obtain funds for long-term expansion. whileThe growth rate of net profit is quite low, averaging per year. 3.05% but higher than GDP growth Growing at an average annual rate of 2.64% (CAGR)

In 2567, 641 family-owned companies listed on the Thai stock market paid a total of more than 126,035 million baht in corporate income tax, representing 37.92% of the total corporate income tax paid to the government by all listed companies on the Thai stock market in 2567, or 16.35% of the total corporate income tax collected by the Revenue Department in 2567.

In addition, listed companies classified as family businesses play an important role.Promoting the country's economic growth through employment  By in the year 2567 registered companies classified as family businesses, number 642 The company has a total number of employees 1.48 million peopleThis represents an increase of 1.8% from 2566, when the number of employees of listed companies classified as family businesses accounted for 9.3% of the total number of private sector employees in 2567.

When considering employment by industry group, it was found that the number of employees of listed companies classified as family businesses was relatively high when compared to the total number of employees in that industry group, especially in the agriculture and food group, consumer goods group, and service group, which employed more than 80% of the total number of employees in that industry group.

Listed family businesses utilize capital market mechanisms to raise capital for expansion, both through IPOs and additional fundraising in the secondary market. They play a crucial role in the Thai economy as taxpayers and employers. Therefore, the government should support family businesses to compete and grow sustainably to enhance future economic growth.