Thailand: Thai Beverage’s listing on the SET will help boost the country's economy

Thai Beverage should be allowed to list on the Stock Exchange of Thailand (SET) to help boost the country's economy, according to a member of the National Economic and Social Advisory Board, The Bangkok Post communicated on February 7. Kriang Wisitsora-at said the economic benefits of a listing outweighed potential disadvantages to society, 80 to 20.

"If we consider the economic aspects, there are benefits of allowing an alcoholic beverage producer to list on the SET. On the other hand, there are social consequences as well," he said on February 6. "But the social problems of drinking occurred long ago. Whether a company lists on the SET or not, the public will continue to drink beer and liquor ... My thinking is that if the economy improves, then society will also." He made the comment at a forum held by the Council and attended by 200 people to debate the listing application of ThaiBev.

The company, owned by billionaire Charoen Sirivadhanabhakdi, produces market-leading Chang beer, Mekhong rum and a host of other liquor products. It has seen its attempts to list delayed since last year by opposition from social and religious groups. ThaiBev says it will now explore a listing on the Singapore Stock Exchange to raise funds needed for expansion.

Mr Kriang said the advisory board generally viewed that a domestic listing would be positive for the overall economy and help draw investment from abroad. The board, an independent body set up under the 1997 constitution, plans to submit its views on the issue to Premier Thaksin Shinawatra later this week.

ThaiBev spokesman Kasemsant Weerakun said the company aimed to raise funds to finance expansion to US and Chinese markets.

While ThaiBev, with annual profits of 10 billion baht on revenues of 90 billion, was a large company within Thailand, its size paled in comparison with leading international producers, he said.

"We aren't looking to raise funds to finance expansion of our production, since that is something we have done already. And we are not looking to encourage Thais to drink more alcoholic beverages," Mr Kasemsant said at yesterday's forum. He cited statistics by the World Health Organisation showing alcohol consumption declining in developed economies.

"Consumption hinges more on state policy and education, not whether producers are allowed to list on local stock exchanges," he said.

SET president Kittiratt Na Ranong said the exchange would forgo the opportunity to boost its market capitalisation by 200 billion baht if ThaiBev listed overseas. Local brokers would lose as much as 600 million baht in annual income from trading commissions on ThaiBev stock.

"I will submit my resignation if ThaiBev lists elsewhere. I approached ThaiBev to list in the first place," he said. "Everyone agrees the social issues should be addressed. But this is unrelated to the listing issue. By having ThaiBev list, our economy will grow, which in turn will help address our social ills in the future."

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