Currently, there are just about 10 public companies in Myanmar that can meet financial transparency criteria of the upcoming Yangon Stock Exchange, according to Japan Exchange Group Inc., which is helping Myanmar to establish a stock exchange.
“In 2015, about 10 public companies can become listed on Yangon Stock Exchange. My estimate is based on their preparation to be able to list themselves on the stock exchange,” said a company official from Japan Exchange Group.
He said that to become a listed company requires transparency especially with financial statements. The public should be well informed about listed companies so that they can make proper investment decisions. Unless a public company has necessary management abilities, it cannot become a listed company even it possesses sufficient capital.
“We need to protect the investors at the stock exchange,” he remarked.
Meanwhile, Yangon Stock Exchange is expected to be launched in 2015. Several public companies are preparing to list on the upcoming stock market.
Myanmar government has also formed the Security Exchange Commission which will process the applications of those public companies desiring to list on the stock exchange.
Currently, the total number of public companies in Myanmar exceeds 100, but some of the industry insiders comment only around 5 of them are qualified enough to become listed firms.
Source: ELEVEN Myanmar