The government plans to set up a second stock exchange or pre-listing board for public companies that do not yet qualify to list on the Yangon Stock Exchange (YSX), U Maung Maung Win, chair of the Securities and Exchange Commission told a local media.
“Pre-listing is for investors to buy and sell the shares of Myanmar public companies that is not qualified yet. This will benefit small and medium-sized enterprises as they will have the opportunity to raise capital.” said U Maung Maung Win.
There are currently more than 260 public companies registered under the Myanmar Companies Law. Only six companies are listed on the YSX.
“Most public companies do not qualify for listing on the YSX. So a pre-listing board will be established to fill this gap. Establishing this market creates the right environment for unlisted public companies and exposes them to new challenges and opportunities that raise their potential of listing on the YSX in the future,” U Yin Zaw Myo, Managing Director of the YSX.
The public companies will still have to meet the criteria of the second board before their shares are open for trading.
Sources: The Myanmar Times