In a corporate history-making event of sorts, the Yangon Stock Exchange will start operations in December with a small number of about 10 companies making their debut on the stock market in untapped frontier market Myanmar.
Deputy finance minister Dr Maung Maung Thein had told media that the stock exchange will open in the first or second week of December.
Rules and action plans for selling on the stock exchange have already been set and there are nine companies selected as players, said Dr Thein, chairperson, Credit Certificate Supervisory Commission of the Ministry of Finance.
The commission has also developed the required infrastructure, regulatory body and cooperation with banks.
Nearly 57 companies had applied for a license of which 10 firms have been nominated to trade on the bourse.
To get shortlisted, firms had to meet the commission’s listing criteria before attempting to float initial public offering (IPO) which allows ownership of shares to the public.
The selection of the companies was based on criteria such as a minimum of K500 million in paid-up capital and a 100 shareholders listed.
On the day of opening stock exchange, the public limited companies (shortlisted) will be announced, he said.
U Soe Thein, deputy managing director, Asia Green Development Bank, said, initially, the stock exchange market will not be so active but will slowly improve as days go on. AGD Bank is looking at a partnership with the stock exchange in areas such as improvement of corporate governance and also technology intervention.
He emphasised the need for transparency and corporate governance, particularly when the stock exchange grows and becomes busier like in other countries.