Myanmar: The five companies expected to initially list on the Yangon Stock Exchange
After months of delays, the Yangon Stock Exchange (YEX) is set to launch on 9 December. While there has been no official announcement, at least five companies are expected to list initially:
First Myanmar Investment (FMI): A diversified conglomerate run by Chinese-Burmese businessman Serge Pun, commonly regarded as one of the most reputable and successful business persons in the country. Pun is also chairman of Yoma Strategic Holdings, which is listed on the Singapore Stock Exchange. Known for its transparency and professionalism, FMI was courted early on by several foreign investors and will likely continue to be a vanguard of corporate finance and investment in Myanmar.
Myanmar Citizens Bank: A small, but uncontroversial bank partly owned by the Ministry of Commerce and one of only two companies already listed on Myanmar’s existing, over-the-counter bourse. Banking sources previously told Access Asia that the bank has paid annual dividends of between 15 and 30 percent for the last fifteen years. Although holding a small market share with a miniscule distribution network (there are only about a dozen branches), the bank has strong growth potential as well as a favourable backing from the Ministry of Commerce.
Asia Green Development Bank: A prominent and high profile bank founded by controversial and sanctioned tycoon U Tay Za, previously labeled by the US as a “notorious henchman and arms dealer”. However, the bank was given the green-light by the US Treasury to do business with American companies in 2013, but US companies are still barred from forming joint ventures with the bank.
Myanmar Thilawa SEZ Holdings: A public company established in 2013 by a consortium of local companies to invest and participate in the development of Zone A of the Thilawa Special Economic Zone. It is one of several companies partnering for the development, which also includes Japanese developers Marubeni Corporation, Mitsubishi Corporation and Sumitomo Corporation. Chairman of the company is Win Aung, a high profile Burmese businessman who was the first sanctioned individual in the country to be de-listed from Washington’s Specially Designated Nationals (SDN) list. The company’s first Vice Chairman is FMI’s Serge Pun.
Myanmar Agribusiness Public Company (MAPCO): A wholly-owned non-government public corporation established in 2012 with the goal to foster broader investment in agriculture and agro-based industries in Myanmar. Its main activities are the trading of rice and consumer agricultural products; the export of rice and consumer agriculture products; the building and running of warehouses and storage facilities; investment in energy and electricity; and construction. Many of MAPCO’s board of directors and key shareholders are heads of other agriculture businesses and associations in the country, some of whom were regarded as ‘cronies’ under the military junta, including Chairman Chit Khine, head of Eden Group. Links to the military could pose a reputational risk to investors, but the company projects a positive image of being a vanguard of Myanmar’s agriculture sector and promoting the welfare of farmers.
According to a recent report in the Myanmar Times, the following ten securities companies intend to operate as underwriters for the new Exchange:
AYA Bank’s wholly owned subsidiary, AYA Trust Securities Company
Co-operative Bank’s wholly owned subsidiary CB Bank Securities
Daiwa Securities and state-owned Myanma Economic Bank’s joint venture subsidiary, Myanmar Securities Exchange Centre
Global World Securities, an Asia World affiliated company
Green Circle Company, known in Myanmar for its Ve Ve drinks brand, in a joint venture with Hong Kong-based Pins Capital, called Expert Investment Securities
Innwa Bank linked Aung Myint Mo Min Securities
KBZ Group and Singaporean firm Stirling Coleman Capital’s joint venture company KBZ Stirling Coleman Securities
Loi Hein Company and Thai firm KT ZMICO’s joint venture subsidiary KTZ Ruby Hill Securities
United Amara Bank’s wholly owned subsidiary Amara Securities
Young Investment Group’s wholly owned subsidiary, Union Trust Securities Company
However, of these ten companies, only three reportedly have been officially registered with Myanmar’s Directorate of Investment and Company Administration (AYA Trust, KBZ Stirling Coleman and Union Trust).
