Published on January 13, 2006

Kittiratt says he’s ‘willing to take responsibility’. Stock Exchange of Thailand president Kittiratt Na Ranong has filled in his resignation form, and is ready to submit it if Chang brewer Thai Beverage Plc ends up listing on the Singapore Exchange (SGX) before the Thai market.

Kittiratt first mentioned resignation to a television channel late on Tuesday, when it looked very likely that in seeking a dual listing on both exchanges, Thai Beverage could first list on the SGX before the Stock Exchange of Thailand (SET), as the Thai regulatory body has not yet considered the company’s domestic listing proposal.

“If the Securities and Exchange Commission [SEC] continues to delay making a decision, or avoids a decision completely, I will quit. I’m not under pressure as this is an international standard stock exchange. Across the world, including New York or elsewhere, exchange presidents should show responsibility if they let a large-sized company list elsewhere. Besides, I personally persuaded the company to list on the Thai exchange,” he told Krungthep Turakij newspaper in an exclusive interview.

Finance Minister Thanong Bidaya said the following day that Kittiratt did not need to tender a resignation as the matter was not his responsibility. Yesterday, Commerce Minister Somkid Jatusripitak also said that nobody had pressured Kittiratt to quit.

“I don’t believe that he will resign. Personally, he is still an able president who has so many things to do,” Somkid said.

Kittiratt said that on Wednesday he had clarified his position with the SEC, explaining why it should speed up consideration of Thai Beverage’s listing. One of his reasons is that, even if Thai Beverage were listed in Singapore, it could still use proceeds from that equity market to finance business expansion in Thailand.

He insisted that the Thai market would witness a lost opportunity if Thai Beverage listed on the SGX, due to the huge market capitalisation of about Bt200 billion. Without the company, the Thai capital market would lose the chance to attract more foreign investment.

“I agree that the government has to listen to opposing voices, but it has to implement social and economic measures at the same time,” he said yesterday. “The government needs to take care of society but it also needs to stimulate the economy.”

Thanong earlier said that the Public Health Ministry was in the process of issuing an alcohol consumption control law, which should satisfy anti-drinking groups which strongly oppose Thai Beverage’s listing on the SET. Kittiratt said it would however take some time to enforce the law, and that could mean an opportunity lost to the exchange.

“Major foreign alcohol companies have been listed [globally], including Carlsberg and Heineken, and they invested the proceeds in Thailand. We could do nothing about that, so why should Thai Beverage be singled out?” he said.

Earlier this week, the Federation of Thai Capital Markets Organisations also vowed to support Thai Beverage’s listing on the local exchange. They also planned to seek a meeting with the SEC to convince the regulatory body to welcome Thai Beverage to the bourse.

Meanwhile, Thailand Securities Depository Co Ltd managing director Nongram Vongvanich said the trading platform was ready for any dual listing. “However, the SET will need to work out details on the trading and settlement rules and regulations to be enforced by both exchanges.”

The SEC has been under pressure since Thai Beverage announced on January 3 that it would seek a dual listing, with the SGX highlighted as the first destination as that exchange has no barriers to entry. Four alcohol companies have been listed on the SGX.

Post your comment to this story here