More enterprises headed for exchange listing
The Securities and Exchange Commission Office (SEC) is considering listing more companies on the Lao stock exchange to help them access investment funds and expand their businesses.
Deputy Prime Minister and SEC Chairman, Mr Somsavat Lengsavad, presided over a meeting to discuss and consider proposals of the companies which wanted to list on the stock market in Vientiane earlier this month.
At present, there are only two companies, BCEL and EDL Gen, listed in the stock market.
SEC officials said they could not yet release the name of companies under consideration as they were still making preparations, but said a list of potential candidates will be announced soon.
A number of companies have expressed an interest in listing on the stock market.
However observers believe Lao companies will face challenges in meeting the criteria for a spot on the exchange, in particular in relation to requirements to provide all business and market-sensitive information. Most Lao firms do not have experience in disclosing financial information to the public.
One of the issues which the meeting discussed was preparations for an international financial report system for company listings.
The meeting participants considered the establishment of a new securities company, the use of international codes on the Lao stock exchange, and what the market's budget was.
The meeting passed regulations on listed share transference on the stock market, and provided a report on the progress of the capital market development strategy plan.
The Securities Law was adopted by the National Assembly in 2012 and came into effect on January 1, 2013, and is considered the first step in creating a capital market in Laos.
The SEC and other relevant bodies have focused on creating regulations to supervise and develop the market in a modern way since establishment of the law.
State enterprises to be targeted in the listing process are expected to be those which will help to strengthen the stock exchange.
vientiane times
