On September 28, 2020, the Securities Exchange Commission of Myanmar (SECM) announced its supervisory and setup role for the Yangon Stock Exchange’s “Pre-Listing Board” (PLB) for unlisted public companies. The PLB will increase activity and development among Myanmar public companies that have yet to meet the criteria to be listed on the Yangon Stock Exchange (YSX).
The public companies that participate in PLB will meet higher standards of corporate governance, transparency and communication. After a few years of training under YSX’s supervision, they will be able to uplist to the main exchange.
While there are currently more than 260 public companies registered under the Myanmar Companies Law, only six public companies are listed on the YSX. The majority of public companies do not meet the criteria for listing on the YSX, and the PLB will fill that gap by providing an environment for unlisted companies to meet new challenges and opportunities.
The program should be especially beneficial as a tool to help small and medium-sized enterprises (SMEs) improve their organizational qualities by meeting PLB requirements while creating new opportunities to raise capital, all with an eye towards an eventual uplisting to the national exchange.
The move comes amid discussion for the creation of a second Myanmar exchange for public companies, which would establish an official platform for trading shares in public companies. Their shares are currently traded in the loosely-regulated over-the-counter (OTC) market.
Unlike most countries, Myanmar allows companies to opt for public status at their inception, provided they meet certain criteria and receive permission from the SECM before they can sell their shares. The Pre-Listing Board and associated exchange will deliver new opportunities for investors to buy and sell shares of Myanmar public companies with the safety and security of strong, transparent regulation by the YSX.
Further details have not yet been announced. If you would like to learn more about Myanmar public companies or listing on an exchange, please contact a Feinstein Law attorney at attorney@feinsteinlawfirm.com or call Feinstein Law’s Myanmar office at (+95)019253334.
