IPO stocks in 68 opened at a low price, with high valuations and market volatility putting pressure on them.

The Thai stock market is facing significant pressure in 68, with nearly all IPOs opening below their IPO price, reflecting investor uncertainty over the overvalued fundamentals. The company emphasizes setting prices appropriate to the business's potential, acknowledging the impact on investor confidence. It recommends focusing on long-term "value."

November 10, 2568: The Thai stock market in 2568 faces its most severe "IPO opening below offering price" in many years. Of the more than 15 newly listed companies, 13 had their first-day share prices below their offering price, reflecting investor uncertainty regarding the excessively high valuations amidst volatile market conditions and shrinking liquidity.

Mr. Assadej Kongsiri, Director and President of the Stock Exchange of Thailand (SET), revealed that the fact that most IPOs opened trading below their offering price this year is a result of the market not having fully recovered, coupled with economic volatility, leading to reduced buying pressure from investors.

Furthermore, the IPO price must reflect the company's true value and reflect a price that is appropriate for its growth potential. Investors should consider the business's fundamentals comprehensively, not just the opening price on the first day.

The new, stricter IPO regulations from the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) will help raise disclosure standards and protect investors, although they will require companies to prepare more before going public.

Mr. Sompop Keerasunthornpong, Managing Director of Finansia Syrus Securities Public Company Limited, stated that recently, the Thai stock market has faced a shaken sense of investor confidence, particularly due to the trading results of more than 15 IPOs that recently began trading, most of which traded below their offering prices. This has resulted in a lack of confidence among retail investors.

Many investors tend to base their decisions on short-term market prices, believing that if the share price fails to stay above its IPO price, it could continue to decline. This is more a fear factor than a true assessment of the business' fundamentals.

"We encourage investors to not only consider the first-day trading price, but also to thoroughly understand the fundamentals and growth potential of each company before making an investment decision. Ultimately, the long-term share price will reflect the true value of the business," said Mr. Sompop.

Mr. Somsak Sirichainarumit, Chief Executive Officer of Asset Pro Management Co., Ltd. (APM), stated that when investing in IPO stocks, investors should focus on studying the fundamentals of the business, including the offering price, before making an investment decision, and should not aim solely for profit on the first day of trading on the stock exchange.

"Investing in IPOs should be viewed as a medium- to long-term opportunity, as the offering price is often discounted compared to the intrinsic value of the business, which will be reflected in the company's continued growth and performance," said Mr. Somsak.

Currently, many investors engage in "buy now, sell on the first day" behavior through ATO (At the Open) orders. This often results in IPO share prices immediately falling upon opening for trading, even if the underwriters or financial advisors have calculated the price based on fundamentals and earnings outlook.

If investors continue to view IPOs as short-term speculative tools, confidence in the Thai IPO market will struggle to recover. He recommends shifting their perspective to investing that emphasizes "long-term value and potential" to generate sustainable returns.

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