PP-SME Opportunity For SME / STARTUP to raise fund in Thailand
PP or Private Placement is a new opportunity for Limited Company / SME / STARTUP to raise fund in capital market of Thailand, in the form of Equity or Convertible Debenture (“CD”), regulated by Securities and Exchange Commission (SEC)
PP-SME is different from IPO, as IPO is offered to Public however PP-SME is offered to Private Placement or specific investor(s). Therefore, limited company is allowed to raise fund in capital market by this regulation which is less restriction compared to IPO i.e., the company only have to prepare Factsheet instead of usual Filing, and responsibility to report to SEC the result of security sale as well as the CD conversion, FA and Certified Public Accountant are also not required. However, there are some regulations to protect the Investor.
CD option is considered as good option, as the investor at the first place come in as Debtor instead of Equity that firstly come in as Owner as a result some criteria and due diligence can be less for supporting the consideration of Investor.
Qualification of the company to raise fund through PP-SME
- Production Business, for Small business the maximum employment is 50 employees and maximum revenue is THB 100,000,000 and for Medium business the employment is between 51-200 employees and revenue between THB 100,000,000 – 500,000,000.
- Commercial and Service Business, for Small business the maximum employment is 30 employees and maximum revenue is THB 50,000,000 and for Medium business the employment is between 31-100 employees and revenue between THB 50,000,000 – 300,000,000.
There are various types of investors such as II (Institutional Investor), PE (Private Equity), VC (Venture Capital), Angel Investor that seeking for SME/STARTUP that can become a Unicorn. Therefore this could be great opportunity either for SME / STARTUP to get the fund or the investor to get good business.
For further information regarding Fund Raising for your business in Thailand, please feel free to contact our corporate lawyer at: