Moreover, SET has imposed a ceiling price for new stocks and investment units, on debut, at no higher than three times the IPO level and a floor price at no lower than 0.5 times. This is to reduce price volatility and risks arising from the trade of stock whose prices do not truly reflect the market conditions.. The reviewed regulations will come into effect on December 2, 2008.
The revised rules narrow the range of daily stock price movement. For example, a stock that is THB 0.50 and used to move between THB 0.01 and THB 1.00, or within a 100% range, will now move within a 30% bracket or between THB 0.35 and THB 0.65.
Regarding the reviewed ceiling and floor criteria for common or preferred stocks and investment units debuting on the main or foreign boards, their ceiling is limited to no more than three times the IPO level while its floor is restricted to no less than 0.5 times. Currently, ceiling and floor prices are not constrained in these cases. For example, a common stock with an IPO price of THB 3.00 a share will now be allowed to trade between THB 1.50 and THB 9.00 only. The new rule dampens high price volatility, thus giving investors more time to become informed about their decisions.
The Exchange will also maintain its screening system for newly-listed stock trade-orders during pre-open I, pre-open II and pre-close. Screening automatically rejects orders that are 50% higher or lower than the projected opening or closing price.
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 /
Watsamon Saowakhonsathien Tel: 0-2229-2797