FETCO is concerned about the IPO shares being undersubscribed, with FA setting the price too high.

FETCO's chairman expressed concern over the low IPO price and urged financial advisors to set an appropriate price after the sale price was set too high. He expressed concern over the low P/E ratio of Thai stocks and businesses fleeing to raise capital abroad.

12 Nov 2568 Mr. Kobsak Phutrakul, Chairman of the Thai Capital Market Business Council (FETCO) Revealing the problem of shares issued and offered for sale to the general public for the first time (IPO) opening below the subscription price from the first day of trading on the stock exchange, he said that in the past, a key issue with IPO shares was setting the selling price too high, which would affect investors who subscribed to IPO shares, who would have to reconsider setting the selling price, especially financial advisors (FA) in determining the appropriate price.

"I'm also concerned because many people have complained about IPOs where the opening price was lower than the subscription price. Even though the current market conditions aren't as bad as before, FETCO will consider this, as we've seen this happen in many companies."

Mr. Kobsak stated that in the past, investors who subscribed to IPO shares would receive some upside from the price. However, the current overpricing has led to undersubscription issues when trading on the market, resulting in significant losses for IPO investors.

In addition to the issue of excessive pricing, the Thai stock market should look for more stocks with a future outlook, such as the technology sector. Currently, the stocks listed on the market that have encountered problems in the past are general stocks.

While the number of IPOs this year has decreased due to the sluggish Thai stock market at the beginning of the year, listed companies planning to raise capital have postponed their plans to wait for the right time. However, recently, as the Thai stock index has begun to recover, listed companies have resumed their fundraising plans.

Meanwhile, another worrying issue is the Thai stock market. If the P/E ratio is low, Thai companies will seek capital raising in foreign markets that offer better returns.

Furthermore, investors now have more investment options if the Thai stock market continues to deliver negative returns, contrary to the higher returns of international markets.

Mr. Kobsak said In the long term, the situation will worsen, including liquidity, and even IPO stocks will not be listed on the Thai stock market. This is an issue that the Stock Exchange of Thailand must urgently address.

Regarding the overall Thai stock market this year, the IAA has set a target price for the SET Index of 1,313 points. There is still potential for upside potential, driving the index above the IAA target, driven by government economic initiatives. The Thai stock market is expected to recover for the remainder of the year, as external factors ease, including the expected decline in US interest rates in December. The SET Index target for 2569 is 1,415 points.

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