7 new stocks in the Thai stock market take a beating from volatility

Several factors have contributed to this uncertainty surrounding IPO stocks. Among them are the impact of overpricing, which reflects companies being overly optimistic of their future business prospects. Also, companies that do not align with current market trends may find it difficult to grab investor interest, further destabilising their stock prices.

Normally, successful IPO stocks are well-distributed among a diverse group of shareholders, including institutional, long-term and small investors. However, recent IPOs have seen suboptimal allocation, with some investor groups receiving a disproportionately large stake. This imbalance has led to challenges in maintaining the value of these stocks.

Moreover, IPO stock prices have not always adjusted adequately to market downturns, leaving them relatively high compared to prevailing conditions. Recent market rumours and speculative trading activities have also raised concerns, prompting heightened scrutiny by the securities market.

The broader Thai stock market has also faced its own set of challenges over the past two months, including factors like the interest rate adjustments in the United States, ongoing conflicts in the Middle East, and several unresolved political issues. These challenges have made the Thai stock market more volatile and riskier, affecting the outlook of even highly anticipated IPO stocks.

Investors, meanwhile, are advised to consider whether IPO stocks align with mega-trends and belong to growing industries before making investment decisions.

Examining IPO stocks between October and November, The Nation has pinpointed seven stocks that have suffered from the turbulence:

• Market Connection Asia Ltd (MCA)

Market: mai

Industry: Service

First trading date: October 26

IPO price: 3.30 baht

Price as of November 2: 1.64 baht

Change: -1.66 baht, -50.30%

• Sirisoft Ltd (SRS)

Market: mai

Industry: Technology

First trading date: October 10

IPO price: 16 baht

Price as of November 2: 8.95 baht

Change: -7.05 baht, -44.06%

• Window Asia Ltd (WINDOW)

Market: SET

Industry: Property construction/concrete materials

First trading date: October 25

IPO price: 2.10 baht

Price as of November 2: 1.19 baht

Change: -0.91 baht, -43.33%

• Ornsirin Holding Ltd (ORN)

Market: SET

Industry: Construction/property

First trading date: October 30

IPO price: 1.49 baht

Price as of November 2: 1.05 baht

Change: -0.44 baht, -29.53%

• Namwiwat Medical Corporation Ltd (NAM)

Market: SET

Industry: Consumer/personal

First trading date: October 31

IPO price: 7.70 baht

Price as of November 2: 6.30 baht

Change: -1.40 baht, -18.18%

• SCL Motor Parts Ltd (SCL)

Market: mai

Industry: Industrial

First trading date: November 1

IPO price: 1.54 baht

Price as of November 2: 1.30 baht

Change: -0.24 baht, -15.58%

• SAFE Fertility Group Ltd (SAFE)

Market: SET

Industry: Service/health

First trading date: November 2

IPO price: 21 baht

Price as of November 2: 17.80 baht

Change: -3.20 baht, -15.24%

As market dynamics continue to evolve, investors are advised to exercise caution and conduct research before considering investments.