A proposed alternative framework for a direct listing regime in Thailand

The capital market creates a considerable beneficence to the development and economic expansion of the country. The stock exchange is one of the mechanisms used to develop the capital market. For the business operation, listing on the stock exchange is a mark of success since accessibility to the exchange contributes to both the economic development and reputation of the business operation. The traditional listing regime is an initial public offering which requires the involvement of an investment bank as the underwriter to offer and distribute the company’s shares to the public. In recent years, there an alternative regime has emerged called “direct listing”, which allows companies to list on the exchange without conducting an initial public offering. This research is undertaken with the objectives of comprehensively examining the traditional listing regime of Thailand and the problems with regulations regarding the listing of the initial public offering on the Stock Exchange of Thailand as the laws and relevant government authorities merely stipulate listing by way of an initial public offering.This research conducts a comparative analysis between the regulations governing Thailand’s initial public offering regime and direct listing regimes in selected foreign jurisdictions, namely the United States, the United Kingdom, and the Islamic Republic of Pakistan. These countries have recently implemented regulations that allow companies to opt for the direct listing route as an alternative means of listing on the stock exchange. By examining these contrasting regulatory frameworks, the study aims to shed light on the similarities, differences, and implications associated with the adoption of direct listing as an alternative route in the context of Thailand’s IPO regime.From studying the topic, the writer has found that the regulation under Thai law regarding the listing regime refers only to the initial public offering regime, which represents the concept of the fundraising mechanism. However, the objective of direct listing in the United States, the United Kingdom, and the Islamic Republic of Pakistan as an alternative listing regime represents a different purpose. Hence, in this study, the writer proposes a way to improve the current regulated listing regime of Thailand.