Stock Exchange of Thailand Targets 2027 for Dual-Class Share Implementation

The Stock Exchange of Thailand (SET) intends to implement a dual-class share structure by 2027 to encourage family-owned businesses to go public. This shift seeks to address a decline in new listings by allowing founders to retain voting control after selling equity to the public.

"From my discussions with a number of family-owned businesses, many don’t want to list, or when they do, they sell only a small amount of shares because they want to protect themselves from a takeover," said Kitipong Urapeepatanapong, Chairman of the Stock Exchange of Thailand, in a statement.

Addressing an IPO Drought

The move follows a period of stagnation for the Thai equity market. According to a report by Investing.com, Thai companies raised 700 million baht ($21.6 million) in IPOs during 2026. This figure represents a 95% decline from 2025 and marks the weakest performance for the exchange since data collection began in 2003.

By adopting a dual-class structure, the SET intends to align itself with regional competitors that offer similar flexibility. "We need to provide this option similar to other regional rivals if we want to attract family-owned businesses in Thailand to list," Urapeepatanapong added.

The Role of Family-Owned Firms

Family-owned enterprises remain central to the Thai economy and are the primary target for this policy change. As of July, these businesses accounted for 705 of the 843 companies listed on the SET, representing 54% of the exchange's total market capitalization.

How Dual-Class Shares Function

A dual-class structure allows a company to issue multiple types of shares with different voting rights. Typically, founders or early investors hold Class B shares that carry multiple votes per share, while the public holds Class A shares with a single vote per share.

This mechanism serves two purposes:

• Founder Protection: It enables owners to maintain operational control and strategic direction, which mitigates the fear of hostile takeovers among family-run firms.
• Increased Liquidity: By reducing the barrier to entry for founders, the exchange aims to increase the number of companies willing to list, which should boost public float and market liquidity.

While the structure provides stability for founders, it often prompts debate regarding corporate governance. Critics of dual-class systems argue that such arrangements can insulate management from shareholder accountability, as the concentration of voting power may limit the influence of minority investors on board composition and corporate policy.