Applications to list on Yangon Stock Exchange to open next month

The Yangon Stock Exchange will begin accepting applications for listed companies by next month, according to Dr Maung Maung Thein, chair of the Securities Exchange Supervisory Commission.

The long-awaited listing criteria was announced earlier this month through state media.

“Companies acting in accordance with the criteria can apply for licences to sell their stocks on the Yangon Stock Exchange,” he said on the sidelines of a seminar on August 23.

Dr Maung Maung Thein said the application process for licences will be announced at the end of the month, with applications beginning to be accepted in early September.

He did not say on how many companies will list, adding it will depend on the applications.

The committee had released 17 points for public companies to meet before listing. Some of the criteria includes a requirement to have at least 100 shareholders and well as K500 million (US$400,000) in minimum capital. The company must also have been paying tax according to Myanmar law, which experts say can be challenging to meet.

Dr Maung Maung Thein that meeting the 17 points laid out in the listing criteria is not enough to guarantee a company is ready to list, as the Securities Exchange Commission must also feel confident the public can trust in the company.

The commission will take two or three months to scrutinise the applications from each company that applies, he said.

The Yangon Stock Exchange is slated to open at the end of November or early December, after being postponed from an earlier start date to avoid its launch taking place at the same time as the November 8 election.

Experts say that transparency is a point for improvement for most local companies before listing.

Jean-Michel Dumont, chair of Ruder Finn Asia, said previously that making information publically available about a company’s condition and the risks for buyers is an important part of listing.

Listed companies should always express their good and bad parts, including any decline in share price and possible losses.

It is as yet unknown how many companies will list on the exchange when it launches.

Three companies – FMI, Asia Green Development Bank and MAPCO – have all publicly said they would like to start selling shares on the Yangon Stock Exchange, though FMI is generally seen as the most ready of the three.

Source: Myanmar Times

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