Thailand: Thai Beverage could encounter reporting complications if it listed first on the Singapore Stock Exchange
Thai Beverage could face added reporting complications if it listed first on the Singapore Stock Exchange and then sought to dual-list on the Thai market, Bangogkgpost announced on January 13. Disclosure, clearing and settlement rules for the two markets all differ, resulting in a possible complications.
Thai Beverage, recently said it would pursue a listing on the Singapore Stock Exchange (SGX) after its listing plans on the Stock Exchange of Thailand had been delayed for months.
The Securities and Exchange Commission has nevertheless to review Thai Beverage's listing application, which has been opposed by social and religious groups as immoral. Thai Beverage executives said they would consider a dual-listing on the SET once local regulators approve its initial public offering. Nongram Wongwanich, the president of the Thailand Securities Depository, said a dual listing however offered a number of complications, although both the SGX and the SET operate on a T+3 clearing-and-settlement cycle.
"If ThaiBev lists in Singapore first, and then seeks to list here, the SET would have to treat the company under the same standards as Singapore," she said. The reverse is the same. If the company lists here first, then goes to another market, the second market would have to follow Thai securities disclosure and trading rules."
ThaiBev would be the first company to be dual-listed in Thailand and Singapore if it eventually goes forward with its plans. Total Access Communication, the country's second largest mobile operator and already listed on the SGX, announced last year plans to seek a dual-listing on the SET.
Mrs. Nongram said ThaiBev should consider listing on the SET first, not only to help promote local market development, but also for the benefit of the company itself, given the easier compliance burden for the firm when compared with the Singapore exchange.
"We still hope that ThaiBev will consider listing on the SET first, but it will take some time for everything to settle," she said. SET president Kittiratt Na Ranong also reiterated his plea to ThaiBev to consider a local listing first.
"The SET is ready to welcome ThaiBev to the market. But whether Chamlong Srimuang is ready is another question," he said, referring to the former Palang Dharma party leader and critic of the ThaiBev listing.
Tilbage
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