For most new companies, the first few months of their initiation are about building their Minimum-Viable-Product (MVP) and also finding the product which perfectly fits with the market. Among all these business rules and regulations, Thailand has a unique set of rules. For new business startups in Thailand, they have the choice to go public from their first day.
You might be shocked but this is actually true.
According to an interview with the President of the Stock Exchange of Thailand, Kesara Manchusree, Thailand will launch a new stock exchange which will accommodate startup businesses.
The new trade will be not at all like Thailand’s two existing stock trades; SET and Mai, which are fixing administrative guidelines and other criteria in the midst of a surge in listings to a limited extent because of privately owned companies trying to open up to the world. The proposition for the new trade is as yet being drafted, yet the normal rollout will be in the third quarter of 2017.
New businesses can list on the new trade regardless of the possibility that they have not earned any income. They can issue value and non-value items including bonds and alternatives. The investment might be limited to accredited investors, but there is still a doubt on this point.
The instability of untested startups is normally very high. In this way, an investor might earn two to three times his investment and on the other hand, might lose it all together as well. An investor can also receive installments in the form of products by the company or get credited with other benefits instead of receiving cash. In some cases, they can also become members of the board.
The sSET Index
The SET will also launch a new index side by side with startup-focused stock exchange for smaller cap companies which will be called sSET. These companies will be examined on the basis of the liquidity and free float of the company’s stock. This index will be launched in January 2017 and almost 100 companies will be listed in this index.
So if you are planning to start your business today in a Southeast Asian country, Thailand is definitely your place.