The Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) are considering revising the criteria for free-float shares in both initial public offerings (IPOs) and secondary markets after unusual surges of many large-cap stocks with low free float disrupted the SET Index in 2020, says Ruenvadee Suwanmongkol, the SEC’s secretary-general.
In addition to the SEC, the SET is also in discussions with its securities firm and brokerage members to decide on additional measures, which will be disclosed after an agreement is reached, said SET president Pakorn Peetathawatchai.
He said the SET already announced listed companies are required to distribute shares of at least 15% of the paid-up capital to minority shareholders. This is the same criteria implemented in foreign countries in which the required portion is 10-15% on average.
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