Thai IPOs benefit from a strong baht.
According to JPMorgan Chase & Co., a rally in the Thai currency will help reverse the decline in the IPO market and provide a positive outlook for Thai companies’ overseas acquisitions.
“The prospect of a strong baht and increased country profile will benefit IPOs as the recovery in international travel accelerates,” said Marko Sukharitkul, head of JPMorgan Thailand.
The national currency strengthened by 12% against the US dollar.
Thailand’s national currency has gained approximately 12% against the US dollar over the last six months, with more than 5% gaining this month alone, making it Asia’s best-performing currency during these periods.
Last year, approximately $4.1 billion was raised through IPOs in Thailand, a 0.5% decrease from the previous year, but the drop would have been even greater if not for demand from domestic investors.
The baht’s dynamics have prompted Thai firms to resume their efforts to invest overseas, according to Marco, after the pandemic canceled most plans.