What is CrowdFunding in Thailand?

Aug. 3, 2018

Crowdfunding in Thailand has a presence that is attractive and vibrant in the investors’ eyes. The implementation of Equity Crowdfunding in Thailand is under the supervision of the Securities and Exchange Commission of Thailand.

In regard to the differente gns countries around the world has in place, Thailand is no different. Issuers in Thailand have a limit of 20 million Baht during the first 12 months as from the first offer and 40 million Baht as from the first date of the first offer. Oversubscription is only allowed if it doesn’t cause the offering amount during the 12 months as from the first offer to exceed 20 million Baht and provided that the offer for sale of securities for oversubscription is not larger than 25 percent of the offering amount. All of these will be calculated based on the offering price. (Notification of the Capital Market Supervisory Board No. TorJor. 7/2558 Re: Regulations on Offer for Sale of Securities through Electronic System or Network)

On the investor side, Retail Investors in Thailand who wish to invest have to pass a knowledge test which will determine if they are qualified enough to understand the risks involved in investing. Investors are classified into one of the following investor categories: Retail Investor and Non-Retail Investor (Institutional Investor, Private Equity Trust, Venture Capital Business and Qualified Investor). There is no limit on investment amounts for Non-Retail Investors but Retail Investors are limited to 50,000 Baht per company and 500,000 Baht per year in all businesses. Additionally, investors can only cancel subscriptions if the remaining offering period is more than 48 hours.

Equity Crowdfunding is relatively new in Thailand and it is making its way through the ranks to becoming a more popular choice for start-ups and budding entrepreneurs in Thailand. It was promoted by the SEC (The Securities and Exchange Commission, Thailand) on the 2nd of April, 2015 to raise awareness about this alternative method of funding.

References

The Securities and Exchange Commission. 2015. SEC-DBD jointly promote “crowdfunding” as an alternative funding option. SEC News Release.

http://www.sec.or.th/en/Pages/News/Detail_News.aspxtg=NEWS&Ig=en&news_no=42&news_yy=2015