ArokaGO and TMWTA Host "Preparing for IPO: A Roadmap for Healthcare Providers" Seminar

On November 30, 2024, at the Phra Shiva Conference Room, Asawin Grand Convention Hotel, ArokaGO, Thailand's medical and wellness tourism platform, in collaboration with the Thai Medical and Wellness Tourism Association (TMWTA), organized the seminar "Preparing for IPO: A Roadmap for Healthcare Providers" to enhance the capabilities of Thai healthcare businesses entering the capital market.

Dr. med. Prapa Wongphaet, President of TMWTA, stated, "An IPO not only expands business opportunities but also serves as a crucial mechanism driving sustainable growth in Thailand's healthcare industry. Especially in an era where technology and innovation play significant roles, access to capital markets will enhance research and development capabilities and add value to the industry as a whole."

Dr. med. Prapa Wongphaet emphasized that providing clear knowledge and guidance on IPO preparation will help Thai healthcare businesses compete internationally and add value to the industry in the future. The association is committed to supporting and serving as a hub to assist Thai entrepreneurs in growing and succeeding in the capital market. This seminar will help build understanding and provide essential guidelines for healthcare businesses preparing to enter the capital market in the future. Importantly, this seminar also offers an excellent opportunity for entrepreneurs to build strong networks, meet partners in the same industry, and access new business development opportunities, thereby strengthening business potential for stable growth. Participants not only received knowledge and advice from experts in finance, investment, and healthcare businesses but also joined a robust network of entrepreneurs from various professions. They can also participate in ongoing activities and seminars organized by TMWTA to promote development and create new opportunities in the healthcare business. The President of TMWTA invites interested entrepreneurs to join the association to increase business opportunities, gain in-depth information, and receive support from various organizations.

The seminar began with a presentation by Assistant Professor Dr.Kulabutr Komenkul, CEO and Co-Founder of ArokaGO. Executive Director of TMWTA, and lecturer in Finance, Investment, and Financial Technology at Dhurakij Pundit University. He presented research titled "Aftermarket Performance of Health Care IPOs: Evidence From ASEAN Countries," which studied the long-term returns of healthcare IPOs in ASEAN countries. The study used data from hospital IPOs listed in ASEAN countries, analyzing 3-year IPO returns using Cumulative Abnormal Return (CAR) and Buy-and-Hold Abnormal Return (BHAR) to measure long-term abnormal returns. The robustness of the results was tested using the Calendar-Time Approach and financial models such as the Fama-French and Carhart Models. The findings revealed that the returns of healthcare IPOs in ASEAN differ from studies in the U.S. The Fads Hypothesis partially explains the long-term underperformance of IPOs in ASEAN. Thai and Malaysian IPOs have better long-term returns due to longer silent periods for strategic shareholders (averaging 1–1.5 years) compared to the U.S. and Singapore (averaging 3–6 months). Small and medium-sized companies in the healthcare industry have better long-term returns than large companies in the ASEAN market. This research provides insights for entrepreneurs aiming to enter the capital market, especially in the ASEAN healthcare industry. This knowledge helps entrepreneurs plan and strategize appropriately for IPOs.


Ms.Jitima Ratanatam, Director of Investor Relations at Bangkok Dusit Medical Services Public Company Limited (BDMS), lectured on "IPO Journey: Opportunities and Challenges for Medical and Health Service Businesses," presenting case studies from BDMS's direct experiences as a leader in Thailand's healthcare service business. Key topics presented by Ms. Jitima included opportunities for healthcare businesses entering IPOs. Entering the stock market opens opportunities for businesses to access larger capital sources, enhancing the potential for business expansion and investment in technology and innovation. Ms. Jitima shared BDMS's experiences on the IPO journey and adapting to investor expectations in the capital market in terms of finance, management, and creating added value for shareholders.


Ms.Duanpan Leelawiwat, Managing Director of Pioneer Advisory Co., Ltd., lectured on "Preparing for IPO: Guidelines and Key Issues for Healthcare Businesses," highlighting processes and essential components businesses must prepare before an IPO. Key points presented by Ms. Duanpan included:

1.Preparation for Healthcare Businesses: Considering specific characteristics such as service standards, transparent management systems, and business development to meet market demands.

2.Accounting Systems and Internal Controls: Efficient accounting management and stringent internal control systems are crucial factors that build investor confidence.

3.Preliminary IPO Preparation Timeline: Advising on systematic planning and operations, from business restructuring and preparing essential documents to pre-IPO business publicity.

4.Stock Exchange Listing Criteria for 2025.

Another highlight was a lecture by Ms.Weeraya Sriwattana, Senior Director and Head of Investment Banking at CGS International Securities (Thailand) Co., Ltd., who shared insights on "Preparing for IPO for Healthcare Service Providers," focusing on key processes in company valuation and stock pricing for IPOs. Popular company valuation methods for IPOs include:

1.Income Approach: Valuing the company using Discounted Cash Flow (DCF) analysis, which examines future cash flows by considering assumptions about business growth, potential impacting factors, and appropriate discount rates to calculate the company's present value.

2.Market Approach: Valuing the company by comparing stock prices and P/E Ratios with similar companies in the stock market to find suitable benchmarks.

3.Cost Approach: Valuing based on the market value of assets.

Additionally, Ms.Weeraya provided knowledge on IPO pricing and discounts, mainly using the Market Approach, where the P/E Ratio is used to compare and set appropriate stock prices. Adding a discount in pricing helps attract investor interest and makes the IPO more appealing. The discount rate depends on market conditions and investor demand at the time; for instance, if the market is volatile, the discount may be increased. Ms. Weeraya's lecture emphasized the importance of financial preparation and transparent organizational management to ensure a smooth and successful IPO process. Entrepreneurs should understand appropriate valuation methods and carefully plan pricing to build investor confidence.

In the final session of the seminar, a panel discussion fostered a creative exchange of ideas and inspired all participants.

 

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For more details, visit ArokaGO.