Thailand bourse plans dual-class shares to boost listings

Thailand’s stock exchange is set to introduce dual-class shares by 2027 in an effort to lure more companies to list on its market, particularly family-owned businesses hesitant to go public due to potential loss of control, according to the exchange’s chairman. The amendment to Thailand’s public company law would enable listed firms to issue shares with varying voting rights, allowing founders or major shareholders to maintain stronger voting influence while still selling equity to the public.

The Stock Exchange of Thailand (SET) is collaborating with the Finance Ministry, Securities and Exchange Commission, and other entities on the proposed changes, which it anticipates Parliament will adopt this year.

The move follows a significant slowdown in Thailand’s initial public offering (IPO) market. So far in 2026, Thai companies have raised around 700 million baht ($21.6 million) through IPOs, a 95% decrease from 2025 and a pace that would make it the weakest year since the SET began tracking the data in 2003, stated the exchange chairman.

Many family-owned companies either refrain from listing altogether or sell a limited portion of their shares, apprehensive about ceding control or becoming susceptible to takeovers. Implementing a dual-class structure could provide these businesses with alternative ways to raise capital while safeguarding founder influence. Family-owned enterprises constitute 705 of the 843 listed companies on the Thai exchange as of July, accounting for approximately 54% of the total market capitalization.

The exchange also views the reform as a means to tackle one of Thailand’s persistent market issues: limited free float in certain major companies.

International investors have expressed concerns over some prominent Thai stocks lacking sufficient shares for trading and purchasing. By permitting controlling shareholders to retain voting power while expanding the public float, the new structure could attract more companies to the market and enhance trading liquidity. Furthermore, the reform would align Thailand more closely with regional markets like Hong Kong, Singapore, and Indonesia, where dual-class arrangements are already permissible.