Myanmar to launch its first capital
Myanmar is ready to launch its first capital market by next month, but the new bourse will not be fully operational until next year, said Kesara Manchusree, president the Stock Exchange of Thailand.
"Myanmar has been preparing to launch its bourse for two or three years and will be the last newcomer in the CLMV," she told reporters at an economic seminar held by the Thammasat Economics Association yesterday. CLMV stands for Cambodia, Laos, Myanmar and Vietnam.
"The SET has been in constant contact and discussion with our Myanmar counterpart along with other bourses in the sub-region, including Laos, Cambodia and Vietnam, on cooperation in terms of training, market operations, investors’ knowledge, and how to manage an exchange properly.
"Vietnam is already moving forward strongly, and it wants to increase the level of its corporate governance practice. Vietnam already has hundreds of shares [listings], compared with four in Laos and two in Cambodia."
Kesara said Myanmar was similar to Laos and Cambodia, as these developing countries need investment on infrastructures, which means they require a large amount of funding. The SET is working with Myanmar to develop its own bond market, which will require rating agencies to assess the situation before Myanmar’s bonds can be sold in the Thai market.
"Thailand has enough domestic and foreign funds along with basic and modern financial infrastructure, so the SET has offered to work with Myanmar on developing its basic financial structures and its own rating agencies," she said.
"Most CLMV bonds are semi-government bonds, so they are quite secure, but the interest rates will normally be determined by their market situation."
Meanwhile, she said the SET had continued to encourage companies in Southeast Asia to raise funds within the exchange.
The Securities and Exchange Commission has allowed foreign companies to launch initial public offerings (IPOs) in Thailand and the simultaneous offering of equities in Thailand and other countries since the beginning of the year. So far two foreign-based holding companies have listed on the SET. The first listing was by CK Power, a Thai company involved in hydropower projects in Laos, and the other is PM Thoresen Asia Holdings, a fertiliser company from Vietnam, which raised Bt145 million via an IPO in May.
Kesara said Amata VN, an Amata Corp subsidiary, was expected to launch an IPO in the SET next month, and the bourse is in talks with many companies in the region that are looking to raise funds directly in Thailand’s capital market.
"Since the Kingdom has the highest number of IPOs in the region|this year from the large number |of SMEs in the country, along with high liquidity, we are now encouraging|[foreign firms] to raise funds in Thailand via direct or secondary |listings, which could benefit them in terms of valuation and liquidity," she said.
"There should be at least one or two next year."
