Myanmar Digest: Great Hor Kham eyes IPO this year; Yangon Industrial Gas to put up $14.3m plant

Pic: Juliet Shwe Gaung. A visitor explores inside the YSX building.

Engineering firm Great Hor Kham is planning to sign a power purchasing agreement by April which will help the company proceed with its listing on the Yangon Stock Exchange in 2018. In another news, Yangon Industrial Gas (Thilawa) Co Ltd has secured the approval to invest $14.35 million in its facility.

Great Hor Kham to finalise PPA this April, eyes IPO this year

YSX-listing bound Great Hor Kham public Co Ltd, an engineering firm engaged in infrastructure investments in east of Myanmar, is targeting to complete the power purchasing agreement by April this year as it prepares for an IPO outing in 2018, a top executive of the company told this portal.

To date, the company has signed a build, operate and transfer agreement with the government, received approval from the Myanmar Investment Commission and completed other assessments to invest in the 20MW Nam Paw hydropower project in Muse, Shan State.

Sai Ohn Myint, managing director of Great Hor Kham Public said, the investment needed for the hydel power project is from $35 million to $40 million. He said, the company will issue an IPO as soon as it secures an approval from the Securities Exchange Commission for a listing on YSX.

The company is targeting to raise K20 billion ($15 million) from its IPO issue while it will generate the another $13 million from bank loan.

“We expect to complete the signing of the power purchasing agreement by the end of April,” said Myint.

The firm experienced a delay of over a year for the listing process as the PPA could not be finalised.

YSX has five listed companies, First Myanmar Investment Co Ltd, Myanmar Thilawa SEZ Holdings Public Ltd, Myanmar Citizens Bank Ltd and First Private Bank. The latest company approved for a listing is TMH Telecom Public Co Ltd.

Yangon Industrial Gas to invest $14.354m in plant

Yangon Industrial Gas (Thilawa) Co Ltd is planning to set up its manufacturing plant in Thilawa Special Economic Zone after it secured an approval to invest $14.354 million, according to a government official.

The company is a joint venture between Yangon Industrial Gas (YIG) based in Myanmar and Thailand’s Bangkok Industrial Gas Co Ltd (BIG).

The factory will manufacture oxygen, nitrogen and argon for the Myanmar market. Founded in 2011, and led by Aung Kyaw, YIG started as an importer of ultra high purity gas required for research centers.

YIG announced the partnership with BIG, a joint venture between Thai investors (led by Bangkok Bank) and Air Products and Chemicals Inc, a leading global industrial gas company in 2014.

Another foreign investment in Myanmar in the same sector is Taiyo Nippon Sanso from Japan which bagged the government approval in 2016. The firm will invest in the manufacturing and wholesale of oxygen, nitrogen and argon with an investment of about $11.3 million in Thilawa Special Economic Zone.

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