Top Thai Startups Look Abroad for IPO Opportunities

Thailand’s most promising tech startups are increasingly bypassing the local stock market, turning instead to foreign exchanges for their initial public offerings (IPOs). This shift is driven by a complex mix of domestic regulatory restrictions, limited local investor appetite, and the desire for greater access to capital and global visibility.

According to data from the Stock Exchange of Thailand (SET), no Thai tech unicorn has yet listed domestically, despite the country’s vibrant startup scene and government ambitions to position Thailand as a key player in Southeast Asia’s digital economy. In the past 18 months, at least five prominent Thai startups—including fintech, e-commerce, and mobility ventures—have actively engaged with advisors and regulators in Singapore and the United States about overseas listings.

Regulatory and Market Constraints

Industry executives and analysts point to a set of regulatory hurdles that have stymied domestic IPOs. The SET imposes stringent profitability requirements and limits on dual-class share structures, making it less attractive for high-growth, cash-burning startups. In contrast, exchanges like the Singapore Exchange (SGX) and Nasdaq offer more flexibility in governance and listing standards, allowing founders to retain control and attract a broader base of institutional investors.

Liquidity is another major concern. The average daily trading volume on the SET for tech stocks remains modest compared to regional peers. According to a 2023 report by the Asian Development Bank, the SET’s tech sector accounted for less than 3% of total market capitalization, versus over 10% on SGX and more than 20% on Hong Kong Exchanges and Clearing (HKEX).

Market Impact and Ecosystem Risks

The exodus of startups seeking overseas IPOs raises concerns about Thailand’s ability to retain its most innovative companies and talent. Venture capital firms, both domestic and international, often prefer exit opportunities closer to home. The lack of high-profile tech listings on the SET hampers the development of a deep local ecosystem, reducing incentives for future entrepreneurs and investors.

Moreover, overseas listings mean that economic value generated by these startups—in terms of jobs, tax revenues, and secondary market activity—may accrue outside Thailand. This trend also complicates efforts by policymakers to foster homegrown champions capable of competing with regional giants from Singapore and Indonesia.

Competitive Landscape in Southeast Asia

Thailand’s predicament is not unique but stands in contrast to the success stories in Singapore and Indonesia. Singapore’s SGX has actively courted Southeast Asian startups, offering regulatory sandboxes and dual-class share options. Indonesia’s IDX has revised rules to attract tech unicorns, culminating in landmark IPOs such as GoTo and Bukalapak. Both countries have leveraged policy flexibility and capital market reforms to become magnets for regional tech listings.

The shift of Thai startups to foreign IPOs could further tilt the competitive balance in the region, reinforcing Singapore and Indonesia as the primary destinations for technology capital and talent. This dynamic poses a strategic challenge for Thailand’s ambitions to be a digital innovation hub.

Policy Response and Future Outlook

Thai regulators have signaled awareness of these challenges. In 2023, the SET launched the "LiVE Exchange," a platform aimed at helping startups and SMEs raise capital with relaxed requirements. However, uptake has been limited, with only a handful of companies listing and overall trading volumes remaining low.

Industry stakeholders have called for further reforms, including revisiting profitability mandates, enabling dual-class shares, and providing targeted incentives for tech listings. Without substantive policy changes, analysts warn that Thailand risks falling behind in the regional competition for innovation-driven growth.

Looking ahead, the trajectory of Thailand’s tech sector will depend on the ability of regulators, policymakers, and market participants to align incentives and create a more conducive environment for startups to go public locally. Until then, the search for capital and global exposure will likely continue to drive Thai startups abroad.

Key Takeaways

  • Top Thai startups are increasingly seeking IPOs on overseas exchanges due to domestic regulatory and market limitations.
  • The trend risks undermining Thailand’s local innovation ecosystem and economic ambitions.
  • Regional competitors like Singapore and Indonesia have attracted more tech IPOs through policy flexibility and capital market reforms.
  • Incremental policy measures in Thailand have yet to reverse the outflow of high-growth startups.
  • Accelerated regulatory reforms are needed if Thailand is to retain its most promising tech companies and remain competitive in Southeast Asia.

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