According to a Stock Exchange of Thailand (SET) poll, there are 451 companies that have been classified as family enterprises on the SET, with a combined market capitalisation of around Bt8trn (about $226bn), or 43% of the market.
According to the report, 149 family firms have raised more than Bt3.08trn over the past seven years through initial public offerings.
The SET examined 791 listed businesses from the main board and the Market for Alternative Investment (MAI). It discovered:
Family enterprises make up 57% of all listed companies on the Thai stock exchange and 43% of the market capitalisation. The bulk of them on the MAI are in the food and beverage industry, real estate development, energy and utilities, commerce, healthcare, and service organisations, though they span practically all business categories.
The combined market value of registered family enterprises as of the end of 2022 was Bt9.07trn. From 2017 to 2022, family businesses’ market capitalisation increased at a compound annual growth rate of 6.7% on average. Changes in stock prices, new IPO filings and corporate performance are major factors influencing this growth.
However, by June 2023, the market value of all listed family enterprises had dropped to Bt8.06trn, an 11.1% decline from the end of 2022, primarily as a result of falling stock prices. The SET Index decreased 11.0% during this time.
Thai family businesses rely on stock market capital raising to support company expansion. These companies have consistently increased in size, capacity to raise finance, ability to generate revenue and profitability. Out of the 212 family firms, 149 have raised more than Bt308.31bn through initial public offerings (IPOs) in the past seven years.
With 86 of 170 family firms being listed in the sustainable stock list in 2022, listed family businesses have an emphasis on sustainable growth. Their combined market value, which made up Bt6.42trn, was 35% of the total market value. These family-run businesses are essential to the development of the Thai economy.
Listed family firms paid approximately Bt101.59bn in corporate income tax in 2022, making up 13.6% of the entire corporate income tax the Revenue Department collected. These enterprises produced up to 39.3% of the nation’s total production.
By the end of 2021, these listed enterprises employed 925,256 people, mostly in the service, real estate, construction, and agriculture and food industries. More than 60% of the workforce in each of these groups was employed by family firms.
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