First Private Bank to be fourth firm to list on nascent Yangon bourse

Photo: First Private Bank.

In the fourth listing on the fledgling Yangon Stock Exchange (YSX), the First Private Bank (FPB) has secured approval to join the bourse and is slated to get listed on January 20, 2017.

YSX – which opened in December 2015 and currently has three listed companies –  is poised to reach a total of 10 listings in 2017.

Two more companies – Great Hor Kham and Myanmar Agribusiness Public Corporation – are likely to follow FPB in 2017.

First Private Bank will be making its listing debut with plans to trade its current paid up capital of about K24.7 billion (about $18 million) as of August 2016. Their authorised capital is K100 billion (about $73 million). The firm has not released any information about issuing an IPO through the YSX.

Myanmar Securities Exchange Center Co Ltd will be the underwriter for the process.

Founded in 1991, the company has 32 branches with 610 employees handling domestic financial services including investment banking as well as a mobile banking service with the brand name, MyKyat.

“We are now in the process of upgrading technology, implementing core banking solution and setting up a data centre along with modernising the bank’s business practices, processes, and standards,” according to the announcement by FPB.

For 2015-16, FPB had a saving deposit of about K93 billion ($68 million), about K10 billion increase from the previous year.

It saw a loan disbursement of K143 billion (about $104 million) for 2015-16, an increase from about K123 billion ($90 million) the previous year.

Its CEO, U Sein Maung, including 10 board of directors take up 14.79 per cent shares and the rest by other shareholders.

The company’s return on equity for 2015-16 was 13.67 per cent, also a fall from 16.82 per cent the previous year. Rising competition from private banks and increase in expenses are factors pulling down profit.

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