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Thai Stock Market: An Attractive Opportunity for Family Businesses
According to a report by the Stock Exchange of Thailand (SET), 57 percent of the 791 listed companies on the SET and Market for Alternative Investment (mai) are identified as family businesses.
Key Takeaways
- Family businesses play a significant role in the Thai economy, accounting for 57 percent of listed companies and contributing 39.3 percent of the country’s GDP in 2022.
- Listed family businesses have shown growth and resilience, with their market capitalization growing by 6.7 percent annually between 2016-2022, and their combined net profits accounting for 46.1 percent of all listed companies.
- Going public not only provides family businesses with access to capital for growth but also helps attract talent and establish solid management mechanisms for long-term sustainability while preserving the family legacy.
These family businesses have been in existence for an average of 34 years, with some as old as 146 years. Most of the family businesses are in sectors such as Food & Beverage, Commerce, Health Care Services, Construction Materials, and Personal Products & Pharmaceuticals.
The report also states that family businesses have achieved their goals of growth by constituting 43.2 percent of the total market capitalization at the end of 2022. However, their market capitalization dropped by 11.1 percent at the end of June 2023 due to the overall market decline. The family businesses have shown a reasonable performance in terms of total assets, revenue growth, and net profit growth.
Additionally, many family businesses are also pursuing sustainable growth, and 86 of them are included in the Thailand Sustainability Investment Index. These family businesses have made significant contributions to the Thai economy, with their combined revenue accounting for 39.3 percent of Thailand’s GDP in 2022.
Going public not only provides family businesses with access to capital, but it also enhances their appeal to talented individuals and helps establish robust management mechanisms for a resilient and sustainable future.
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