Stock Exchange of Thailand talks initiatives to boost professional skills
Though Thailand is a country renowned for its excellent beaches, it also has some excellent investor relations professionals, supported for many years by an active stock exchange that has encouraged and nurtured talent. The Stock Exchange of Thailand (SET) was founded in April 1975, 24 years before the Singapore Stock Exchange and 15 years before the Shanghai Stock Exchange, making it a big brother to many Asian, ex-Japan exchanges.
While the SET facilitated the birth of the IR Club in 2001, and helped arrange funding for seminars and training courses, it later handed the organizational reins over to the Listed Companies Association and IROs themselves. Still, even today, the SET plays a role in training and has spent some time on explaining to CEOs, CFOs and boards the importance of investor relations.
‘Some CEOs still believe the investor relations role ends at the IPO,’ says Suraphon Buphakosum, deputy vice president of the Good Governance Development & Alliance Department of the SET. ‘That is why we now visit a listed company about six months after the IPO to talk with the CEO, audit committee chairman and chairman of the board about corporate governance and investor relations. We want to know if they are facing any issues or having problems.’
While most companies are glad of the exchange’s help, some are unable to respond to the SET calling for an appointment and cannot meet for one reason or another, so the education process can occasionally be slowed.
Naturally, different types of owners have different ideas about what a listing will do for them. ‘Some of the companies have old owners who wanted to exit but cannot get a good valuation on their stock. We explain that IR doesn’t help without good fundamentals,’ Suraphon notes.
Whereas most IROs come from a finance or public relations background, it is also and unfortunately true that on the secondary board for small caps - the Market for Alternative Investment (MAI) - a secretary is sometimes assigned to take care of investors. This issue of ‘lightweighting’ the role of IR also affects other bourses in the region.
The SET does hold basic finance courses for IROs and invites CEOs and CFOs to attend. ‘We also have CEO workshops twice a year - one for companies planning to list, another for newly listed companies,’ says Suraphon. ‘We dedicate the whole day to investor relations for all companies planning to list. Another course for newly listed companies includes IR topics with corporate governance and CSR, that we call ‘SD Talk’. This makes it more like an orientation for newly listed companies on how to make themselves sustainable.’
Getting CEOs to attend training is like pulling teeth, however, as many dislike attending courses that pull them away from the task of running their company and making money.
Suraphon explains that the SET is pursuing its goals of developing investor relations come what may, ‘We have set up a professional IR plan for all IROs. Each year we have eight training courses, ranging from basic to advanced levels, for them to attend. Our speakers are experienced and knowledgeable IROs like Jiraporn Rungsrithong of Grammy and others involved in the capital market.’
Not content with only homegrown wisdom, the exchange has commenced cooperation with the Investor Relations Professionals Association of Singapore (IRPAS) and co-hosted an event. ‘We got the head of IR at CapitaLand, Harold Woo, who is concurrently president of IRPAS, to come over and talk about how to prepare for a roadshow,’ Suraphon says. ‘The SET has also produced tools and guidelines for IROs, including a handbook, a code of conduct, checklists, a directory, practice surveys and a presentation showcase online.’
The SET also offers special advisory services to listed companies. ‘We understand that implementing an IR program sometimes can be quite difficult for those who have no experience,’ Suraphon explains. ‘Education may not be enough. So we have established the SET’s IR Advisory Program to closely work with a small group of listed companies and offer advice.’
So what makes Thai IROs a cut above the rest, according to Suraphon? ‘It is that service mindedness that comes from deep within the nature of Thais: to be welcoming, to care,’ he smiles. ‘They will work hard to get the answer to any question in one day.’ Richard Jones is head of investor relations and corporate communications at Indorama Ventures.
