According to Myanmar Securities and Exchange Commission (SEC), when trading of listed companies’ shares starts in March, only two or three companies will be ready. Six companies have been shortlisted to list on Yangon’s new stock exchange (YSX) and those firms would all be able to start trading on the exchange in February or early March.
The companies are First Myanmar Investment Company, First Private Bank, Great Hor Kham Public Company, Myanmar Agribusiness Public Corporation (MAPC), Myanmar Citizens Bank and Myanmar Thilawa SEZ Holdings Public Company.
Tin May Oo, an official at the SEC said that not all the companies would be ready by March. Only two or three would likely to be qualified in time. The companies are still fulfilling important requirements, such as due diligence, corporate governance structure and other legal requirements. Some of the firms are still in the process of working with advisory firms, law firms and auditors. Underwriters are similarly unprepared. Of the ten companies licensed as underwriters, the only one to have opened an office is KBZ Stirling Coleman Securities. The other nine are still hiring staff, building infrastructure, setting aside the necessary capital and setting up offices.
KBZ Stirling Coleman Securities is working as an underwriter for Great Hor Kham(GHK) and would like to take between nine and 11 months to prepare GHK for the IPO, even if GHK is eager for a shorter preparation time. Few Firms Ready for March IPO Soe Thein, Former Executive Director of SEC said that not all six companies would be able to list in 2016. Several companies do not publish annual reports – an IPO requirement – and others were still working on their prospectuses. If not all the companies are ready in March; it will be awkward for the exchange. But even if the firms are prepared, orderly development is still important in the initial stages.
Tun Tun, Chief Financial Officer of FMI said, “FMI was in talks with several securities companies to help FMI open accounts for its shareholders. But I cannot comment on when FMI might be ready to list. As a listing candidate, the timing of our approval depends on the relevant authorities and is not determined by us. We are closely working with YSX on the listing examination process”.
One Yangon-based financial consultant said, “There was no issue around having a stock exchange with only a few companies listed. The modern incarnation of Poland’s Warsaw Stock Exchange opened in 1991 with only five companies listed and a first day’s trading volume of just a few thousand dollars.”
