Myanmar Sugar Development Public Company is planning another share sale to invest in Thilawa SEZ and also finance a sugar processing factory, according to company directors.
The firm is planning to sell 500,000 shares at K11,000 a piece in the coming funding round, with prices K1000 more expensive than its first issue of 1 million shares, directors said at the company’s annual meeting on August 17.
Myanmar Sugar will put about K2.95 billion (US$3 million) of the total K5.5 billion it plans to raise into Thilawa SEZ shares. Myanmar Sugar is one of nine founding companies which together are to own at least 45 percent of Myanmar Thilawa SEZ Holdings Public Limited (MTSH), which in turn owns 41pc of Thilawa SEZ project, according to MTSH’s website and prospectus.
Another 30pc of the capital to be raised is scheduled for a multi-purpose sugar mill in Sagaing Region’s Katha township.
The Katha mill will be run under the name Kamdhenu Ventures Myanmar in a joint venture, with the Singaporean partner owning 70pc and Myanmar Sugar owning the rest. It will refine sugar as well as process ethanol, power electricity and fertilizer, officials said. The rest of the capital is to be allocated to sugar field irrigation.
Company director U Thiha Htun said the second funding round is required to finish the projects.
“We are selling shares again because the project is still progressing and needs investment – we need long-term investment for the company,” he said.
While Myanmar has no modern stock exchange, it has over 100 public companies which are allowed to sell shares to the public over-the-counter. Public companies are required to have seven shareholders and submitted a prospectus and annual reports for approval.
Officials have announced plans for a Yangon Stock Exchange in 2015, but some experts have questioned whether the timeline is achievable.
Source: MYANMAR TIMES