Burmese logistics service provider Ever Flow River Group (EFR) will become the sixth company to list on the Yangon Stock Exchange (YSX), the bourse announced last Friday.
EFR will start trading on 20 March 2020, and the reference price will be announced one business day earlier, the exchange said.
EFR had a capitalisation of almost 12.2 billion kyats (nearly $8.6 million) as of 31 March 2019, according to its listing prospectus.
The company’s founder and chairman, U Kyaw Lwin Oo, is the largest shareholder with a 29.48 per cent interest. Meanwhile, his wife owns 27.7 per cent of the company and holds no executive role. An entity named Chang Yang Development Company Limited owns another 8.6 per cent stake as a result of a recent private placement, EFR said.
Founded in 1998 and registered as a public company in 2014, EFR operates eight subsidiaries and has stakes in three affiliate businesses which are engaged in the logistics and infrastructure development sectors.
The group posted a total comprehensive income for the fiscal year ended March 2019 of 2 billion kyats ($1.4 million), compared to nearly 668.8 million kyats a year earlier. By the end of September 2019, however, the company reported a negative income of 341.3 million kyats.
EFR provides comprehensive logistics services across the entire supply chain and plans to expand its business through investment in logistics infrastructure.
“Due to its geographical advantage, Myanmar has enormous potential to become a key regional transport and logistics hub. However, the country suffers from a notable lack of spending on infrastructure,” the company said.
Often called the last frontier market of Asia, Myanmar launched its stock exchange in 2014. In 2016, First Myanmar Investment became the first company to list on the exchange. Other listed businesses include Myanmar Thilawa SEZ Holdings, Myanmar Citizens Bank, First Private Bank and TMH Telecom.
YSX currently has a market capitalisation of 645.6 billion kyats ($453.5 million).