Yangon Stock Exchange releases listing rules information

» Posted on Aug 26, 2015 in Highlights

Yangon Stock Exchange releases listing rules information


       Yangon Stock Exchange releases listing rules information


The Yangon Stock Exchange (YSX) has issued preliminary information on its proposed listing rules.  

Information was released in relation to key requirements that companies must comply with in order to list on the YSX. These criteria include qualitative standards relating to corporate management, corporate governance and compliance, disclosure of corporate information, insider trading, internal management and internal control. The criteria were drawn up after lengthy negotiations between the Yangon Stock Exchange and the Government.  Among the key listing requirements are:-

  • Applicants to have a minimum paid-up capital of Kyats 500 million
  • Applicants to have recorded profits in the two years immediately prior to listing
  • Applicants must demonstrate that they are Myanmar tax compliant
  • The applicant company, its owners, or any of its board of directors must not be on the blacklist maintained the Government
  • The applicant will be required to demonstrate that they have put in place adequate internal controls to prevent insider trading

The preliminary requirements make no mention of a minimum float, a standard common to most international exchanges whereby a minimum percentage of a listed company’s share capital should be owned by the public.  Another issue of concern is that companies blacklisted by the Government will be prevented from listing.  While it is common for an exchange or regulators to insist that an applicant and its business is, in the opinion of the exchange or regulators, suitable for listing, it is not normal for a Government to have the power to block a listing application.  Myanmar Government blacklists are not made public and it is feared that the requirement could amount to a Government veto over applications.  The Yangon Stock Exchange was originally scheduled to open in October 2015 but is now not expected to launch until after Myanmar’s general elections in November 2015. The Securities and Exchange Commission of Myanmar has yet to award securities companies with licences to operate on the YSX. Once issued with licences, securities companies will be required to undertake extensive tests to make sure that their IT systems and platforms are ready to handle day-to-day trading.  It is expected that the first company to list on the Yangon Stock Exchange will be First Myanmar Investment Ltd, one of Myanmar’s largest conglomerates and an affiliate of Singapore-listed Yoma Strategic Holdings Ltd.  (Source: http://www.globalcapital.com/article/syw940ygs2sg/strict-ipo-rules-in-place-for-first-myanmar-stock-exchange, 20 August 2015)


World Bank provides US$7 million convertible loan to Myanmar Oriental Bank

The World Bank’s International Finance Corporation (IFC) has announced that it will issue a US$7 million convertible loan to Myanmar Oriental Bank Ltd (MOB), which will be used to finance small and medium enterprises (SMEs) in Myanmar. This is the second ‘SME loan’ issued by the IFC in Myanmar. The IFC previously provided the MOB with a US$5 million trade finance loan-facility in 2014. The loan is intended to help local SMEs increase imports and exports, generate more foreign exchange and create jobs. The IFC’s long-term financing goal is to provide more than US$200 million in loans to SMEs by 2019. The IFC has stated it wishes to work with more Myanmar banks in the future. (Source: http://www.mmtimes.com/index.php/business/16074-ifc-signs-second-convertible-loan-with-local-bank.html, 20 August 2015)


Government executes new concession agreement in relation to Dawei SEZ

On 5 August 2015 the Myanmar Government (Government) executed a new concession agreement with a consortium of private developers, including the Italian-Thai Development Public Co. Ltd (ITD), in relation to the development of the Dawei special economic zone (Dawei SEZ).  The announcement comes almost two years after ITD withdrew from the project citing financial difficulties. The new consortium includes ITD, Japanese-Thai joint venture Rojana Industrial Park Public Co. Ltd and Thai company LNG Plus International Co. Ltd. The governments of Myanmar and Thailand first signed a memorandum of understanding to develop the Dawei SEZ in 2008. In 2010, the Government granted a 60-year concession to ITD who proposed to develop a deep sea port, industrial estate, and road and rail link to Thailand. In 2012, following two years of inactivity on the project, local company Max Myanmar Ltd opted to cease its involvement with the development. In 2013, the concession rights were transferred from ITD to a special purpose company jointly owned by the governments of Myanmar and Thailand.  The Japanese government has also indicated that they are willing to invest in the project. According to the Dawei Development Association (DDA), the project will be developed in an environmentally and socially sustainable manner in line with best international practices.  The DDA has called for proper compensation and resettlement of persons affected by the development. (Source: http://www.mmtimes.com/index.php/business/15872-government-signs-dawei-agreement-with-itd-again.html, 7 August 2015)


Myanmar and Thailand sign reciprocal visa exemption agreement

The governments of Myanmar and Thailand have executed a reciprocal visa exemption agreement. Under the scheme, Thai and Myanmar passport holders travelling by air will be allowed entry to their neighbouring country without a tourist visa for a stay of no more than 14 days.  According to the Thai embassy in Yangon, the objective of the visa exemption is to facilitate and enhance travel and cultural exchange between Thailand and Myanmar. The visa exemption rule does not replace or alter other existing visa arrangements between Thailand and Myanmar. Tourist and business visas can still be obtained at the respective embassies and consulates prior to travel. Regulations regarding visas at land border also remain in force. For the time being, the exemption only applies to Thai and Myanmar travelers flying on any of scheduled flights between Bangkok or Chiang Mai and Yangon, Mandalay or Naypyitaw. (Source: http://www.mmbiztoday.com/articles/visa-exemption-scheme-between-myanmar-and-thailand-goes-live, 19 August 2015)


PTTEP International to carry out additional surveys in Zawtika offshore area

PTTEP International Ltd, a division of Thailand’s state-owned PTT Exploration and Production Co. Ltd (PTTEP), has announced that it will undertake additional surveying in the Zawtika offshore area. Surveying is expected to be completed before the end of 2015.  The Zawtika field is operated by PTTEP International, which holds an 80% share, with the remainder held by the Myanmar Oil and Gas Enterprise. Zawtika currently produces 350 – 360 million cubic feet of natural gas per day of which approximately 100 million cubic feet is allocated for domestic use with the rest exported to Thailand.  The site has three production platforms at present, with another four under construction. Additional platforms and drilling facilities are required to maintain current rates of production up until 2024. (Source: http://www.mmtimes.com/index.php/business/16076-more-exploration-planned-around-zawtika-as-pttep-to-add-more-production.html, 20 August 2015)

    Yangon Stock Exchange YSX listing rules

    Development of Dawei SEZ special economic zone Myanmar

    PTTEP International in Myanmar

    IPO rules in place for Yangon Stock Exchange

    Dawei SEZ consortium Italian-Thai Development Public, Rojana Industrial Park Public and LNG Plus International

    PTTEP International surveying in Myanmar Zawtika offshore area

    Myanmar SME loan to Myanmar Oriental Bank

    Myanmar and Thailand reciprocal visa exemption agreement

    Myanmar Oil and Gas Enterprise

    World Bank’s International Finance Corporation loan to Myanmar

    Small and medium enterprises SMEs in Myanmar

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