SET anticipates Oliver Wyman’s report on Thailand’s securities trading

The Stock Exchange of Thailand (SET) anticipates an imminent report from international consultant Oliver Wyman. The report, expected to be completed in the first week of February, focuses on the suitability of Thailand’s securities trading programs and the prevention of naked short selling.

This initiative, led by SET President Pakorn Peetathawatchai, follows investigations into four alleged instances of naked short transactions, none of which found evidence of wrongdoing.

Wyman’s expertise has been instrumental in analysing program trading on the SET. The consultation aims to identify areas where the Thai exchange falls short of global standards and propose short, medium, and long-term corrective measures. The programs under examination include high-frequency trading, typically associated with short-term trading orders.

Upon completion, the findings will be presented to the Securities and Exchange Commission (SEC). Any subsequent regulatory changes will be subject to a public hearing before implementation, as confirmed by Pakorn.

Despite receiving complaints regarding suspected naked short transactions, the SET found no violations in the four cases examined. Pakorn urged those claiming knowledge of naked short selling to verify their information, reiterating the SET’s commitment to investigate any suspicious activities.

In a related development, Thaicredit Bank announced its intention to float its shares on the SET in February. The initial public offering price is projected to be between 28-29 baht each, with a total of 347,029,122 shares available to the public via ten securities companies and leading banks.

Thaicredit Bank’s CEO, Winyou Chaiyawan, outlined the bank’s ambitious growth target of approximately 30% per annum over the next three to five years. The bank’s total outstanding loans for the first nine months of 2023 stand at approximately 140 billion baht.

The bank’s current financial position indicates a price per book of roughly two times, a debt-to-equity ratio of about six-to-seven times, and a non-performing loan ratio of around 4%. Notably, 60% of these non-performing loans are guaranteed by the Thai Credit Guarantee Corporation.

The main underwriters for the bank’s public offering include CGS CIMB Securities (Thailand), Bualuang Securities, and Maybank Securities (Thailand), with CIMB Bank as the co-underwriter, reported Bangkok Post.