SET survey finds Thai family-run businesses thriving
A total of 451 companies were identified as family businesses on the Stock Exchange of Thailand (SET), and they have a combined market capitalisation of about 8 trillion baht (about US$ 226 billion), representing a 43% share of the market, a survey by the SET found.
Over the past seven years, 149 family businesses have raised over 3.08 trillion baht through initial public offerings, the survey found.
The Stock Exchange of Thailand surveyed 791 listed companies on the main board and the Market for Alternative Investment (MAI). It found:
57% of all listed companies on the Thai bourse are family businesses, accounting for 43% of the total market capitalisation. They span nearly all business categories, but on the MAI the majority are in the food and beverage sector, real-estate development, energy and utilities, commerce, healthcare, and service groups.
As of the end of 2022, the total market capitalisation of registered family businesses amounted to 9.07 trillion baht. When considering the growth of market capitalisation among family businesses from 2017 to 2022, the compound annual growth rate averaged 6.7%. Key factors contributing to this growth include changes in stock prices, new IPO registrations, and business performance.
As of June 2023, however, the total market capitalisation of listed family businesses had decreased to 8.06 trillion baht, down by 11.1% from the end of 2022, mainly due to a decline in stock prices. During this period, the SET Index fell 11.0%.
Family businesses in Thailand rely on raising capital in the stock market to foster business growth. These businesses have shown consistent growth in terms of size, capital raising, revenue generation, and profitability. Over the past seven years, 149 family businesses (out of a total of 212) raised more than 308.31 billion baht in IPOs.
Listed family businesses emphasise sustainable growth, with 86 of 170 family companies being included in the sustainable stock list in 2022. Their total market capitalisation reached 6.42 trillion baht, accounting for 35% of the overall market capitalisation. These family businesses play a crucial role in driving the Thai economy forward.
In 2022, listed family businesses contributed up to 39.3% of the country's total product output and paid over 101.59 billion baht in corporate income tax, accounting for 13.6% of total corporate income tax collected by the Revenue Department.
As of the end of 2021, these listed companies employed 925,256 people, particularly in the agriculture and food group, real estate and construction group, and the service group. Family businesses in these groups employed more than 60% of the total workforce in their respective sectors.
