Bangkok--4 May--SET
In its 34 years of existence, celebrated today, The Stock Exchange of Thailand (SET) has proven to be vital to helping firms raise funds for the country’s sustainable economic growth. Thirty-two companies have been listed on SET for over 30 years. During this period, they have collectively raised THB583 billion (USD16.46 billion), and their market capitalizations have risen by 4,591%; their total sales by 3,660% and their net profits by 5,634%.
“Over the past three decades, SET had faced many economic crises and overcome them all. SET has proven to be key in raising low-cost funds for business expansion and helping firms resolve their financial difficulties,” SET Chairman Pakorn Malakul Na Ayudhya noted.
“Since SET’s founding, listed companies in general have raised THB2.4 trillion (USD 67.81 billion) through the bourse. SET has been Thailand’s only secondary market for securities trading, thus creating liquidity for securities issued by listed firms, and resulting in business expansion and employment. Moreover, SET has been a major investment alternative for those with savings, expanding the government’s tax base, and developing the Thai capital market’s structure to continually support the country’s sustainable economic growth. Obviously, SET is a major economic force, with a significant role in developing Thailand’s financial system and the country’s well-being,” he continued.
“Today, (April 30, 2009) marks the thirty-fourth year of SET’s operations. SET is hosting the ‘Celebrating 30+ Years as a Listed Company,’ celebration to thank and congratulate the 32 listed companies for listing and trading on SET for over thirty years,” said SET President Patareeya Benjapolchai.
SET started operations on April 30, 1975, with eleven companies listed. Five of those pioneers have stayed with SET and grown with the Thai capital market. These firms are Bangkok Bank PCL (BBL), Berli Juker PCL (BJC), Dusit Thani PCL (DTC), Siam Cement PCL (SCC) and Thanachart Capital PCL (TCAP).
“We are proud of all 32 firms that have been with us through three decades, in good times and bad. They have benefited from their listing, as the funds they have raised THB583 billion (USD16.46 billion), accounting for 26% of total capital mobilized, while their current market capitalization of THB664 billion (USD18.76 billion) is 19% of total market capitalization. Most importantly, their net profits in 2008 came to THB89 billion (USD2.50 billion), or 31% of all industries combined,” reported Ms. Patareeya.
The thirty-two pioneers have been consistently growing, as their combined market capitalization rose from THB14 billion (USD399.94 million) in their first years of listing, increasing to THB664 billion (USD18.76 billion) today, which is an increase of 4,591% or a compound annual growth rate (CAGR) of 13%. After raising funds via SET, the companies expanded their businesses, supporting the companies’ growth, resulting in an increase of total sales from THB19 billion (USD543.01 million) in the first year to THB723 billion (USD20.42 billion) in 2008. This was a sales rise of 3,660%, or a CAGR of 12% per year. The combined net profits increased from THB1.54 billion (USD43.62 million) to THB89 billion (USD2.50 billion), which was an increase of 5,634%, or a CAGR of 13%.
“All these pioneers have been playing key roles in building confidence among SET investors and supporting SET to be a fundraising mechanism for firms to increase the companies’ ability to take advantage of opportunities and increase their competitiveness. SET’s important mission is to continue creating understanding among investors, creating new investors, encouraging companies to list, and support listed firms as they develop their management expertise and corporate governance. These factors combined will help the Thai capital market to stably grow and continue as the country’s economic driving force,” concluded Ms. Patareeya.
Press office, please contact Public Relations Unit, the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Kanokwan Khemmalai Tel: 0-2229-2048 / Panitee Chatpolarak Tel: 0-2229-2792