Thailand: Brokers call for authorities to approve ThaiBev's entry on SET

Local securities brokers and fund managers urged on Friday, February 3, the Securities and Exchange Commission to approve the application of Thai Beverages to list on the local stock market, The Bangkok Post communicated on February 4.

The Federation of Thai Capital Market Organisations, led by chairman Kongkiat Opaswongkarn, yesterday met with SEC secretary-general Thirachai Phuvanatnaranubala to show their support for the ThaiBev listing.

Regulators have delayed consideration of the listing until formal passage of a new alcoholic beverage law. Dozens of religious and social groups have protested against the listing on moral grounds.

ThaiBev, a giant holding company controlled by Charoen Sirivadhanabhakdi, is the producer of market leader Chang Beer, Mekhong rum and dozens of other spirits and whiskies. The company has said that it would seek a listing on the Singapore Stock Exchange if its application to the SET is rejected. Dr Kongkiat said that ThaiBev, with sales of 90 billion baht, paid taxes totalling 50 billion baht each year, equal to 5% of total government tax receipts.

Allowing the company to list on the Singapore exchange would result in the SET losing the chance to boost its market capitalisation by as much as 200 billion baht, he said. Local brokers would also forgo revenues from securities trading by up to 500 million to 600 million baht per year, while Thai investors would lose the opportunity to invest in a highly profitable business, he added.

Dr Kongkiat said the securities industry was sensitive to social concerns about the alcoholic beverage producer. ''But there is nothing to indicate that allowing the company to list would result in greater drinking. The way to address the social concerns is through public education and better enforcement of the law,'' he said.

Adisorn Sermchaiwong, president of the Association of Investment Management Companies, said that while the SEC has considered the social issues of the case, regulators should also consider the lost opportunities from rejecting a listing.

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