Thailand is planning to establish a dual-class share structure to attract more companies to list on its local exchange.

This move aims to ease company founders' concerns about equity dilution and to end the sluggish pace of new listings.

The proposal, expected to be implemented by 2027, also seeks to satisfy institutional investors' demand for greater investment opportunities in the country's leading companies.

Kitipong Urapeepatanapong, Chairman of the Stock Exchange of Thailand, stated that amendments to Thailand's public company law will allow listed companies to issue different classes of shares with varying voting rights.

As of July, among the 843 companies listed on the Stock Exchange of Thailand, 705 were classified as family businesses.

These family enterprises have a combined market capitalization of 10.93 trillion baht, accounting for 54% of the total market value of Thai listed companies.

Kitipong noted that some Thai companies offer only a small portion of shares to the public, list on foreign exchanges that provide dual-class share structures, or simply avoid going public altogether.

He said: "If we want to attract Thai family businesses to list, we need to offer options similar to those of our regional competitors. This will also help improve liquidity, which has been one of the main complaints from international funds."

Kitipong stated that foreign investors have said the free float of some of the country's major listed companies is insufficient for them to buy and trade shares.

Kitipong said the Stock Exchange of Thailand has been working with the Ministry of Finance, the Securities and Exchange Commission, and other agencies to advance the dual-class share structure amendment, which is expected to be approved by parliament this year.