Myanmar: Great Hor Kham defers listing to March, to issue shares in four tranches

Photo: Juliet Shwe Gaung. Sai Ohn Myint, managing director of Great Hor Kham Public Co Ltd at the office in Yangon.

Myanmar-based contractor Great Hor Kham Public Company plans to issue shares on the Yangon exchange in four tranches over the next four years, to fund its Nam Paw Hydropower project, a top company official said.

The first of the four issues is expected to be in March 2017 when it lists on the exchange, said Sai Ohn Myint, managing director, Great Hor Kham Public Co Ltd.

Great Hor Kham is among the six companies that were scheduled to be listed on the Yangon Stock Exchange (YSX) since it was inaugurated in December 2015. It is still expected to be the first company that is slated to go in for a IPO.

To date, three companies, First Myanmar Investment Co LtdMyanmar Thilawa Special Economic Zone Holdings and Myanmar Citizens Bank are listed on the YSX. First Private BankMyanmar Agricultural Business Public Corporation and Great Hor Kham are in the process of preparations for their respective listings.

Myint did not say how much capital the company had planned to raise via the listing.  The company intends to raise half of the estimated cost of $40.6 million for its Nam Paw hydropower project via the listing.

“We plant to submit our prospectus to the Myanmar Securities Exchange Commission in December,” Myint told DEALSTREETASIA. The company plans to issue the first tranche of shares via its listing in March, and will use the proceeds towards civil work associated with Nam Paw.

The company recently got a new chairman in Sai Yi Mon, and Myint, who was the chairman is now taking the role as a managing director.

Great Hor had earlier said it intended to list in November this year, but had to defer the process as several business related issues such as power purchase agreement for Nam Paw were yet to be completed. Nam Paw Hydel is located in Muse township and the Memorandum of Agreement for the 20 MW power plant was signed in March 2016.

According to Myint, the company was planning to issue shares to the public on the Yangon exchange in four tranches spread across four years, in a bid to ensure that it gets financing ‘only when it really needs it for certain stages of growth’.

Even as the listing plans are being finalised, Great Hor is also in ‘early talks’ to secure loans from Ayeyarwady Bank and some other foreign players, Myint added.

KBZ Stirling Coleman is the IPO manager and underwriter for the listing, while VDB Loi is handling due diligence, restructuring and pre-IPO preparation. Deloitte  is providing pricing support service of hydropower project.

Great Hor Kham’s current paid up capital is about K5.4 billion and the company is submitting their new authorized share capital of K30 billion to the Directorate of Investment and Company Administration.

The current assets of the company is K12 billion, and the total number of shares at the end of the financial year as of March 2016 is 54,518.

Net profit for the financial year ended March 2016, according to its financial report, was K899 million up from K570 million for the corresponding period last year.

Once Great Hor Kham is approved for listing and IPO, they will be ready to market the listing to the public, said Myint. “In four towns, Yangon, Mandalay, Taunggyi and Lashio, we will marketing efforts for this IPO,” said Myint.