Myanmar plans to set up a second stock exchange or a pre-listing board as a fundraising avenue for firms that don’t meet listing requirements of the Yangon Stock Exchange, according to a local news report, quoting the government official who heads the securities regulator in the Southeast Asian nation.
Only six of the more than 260 public companies registered in Myanmar are listed on the Yangon Stock Exchange, and a second bourse will be beneficial for small and medium-sized enterprises, says U Maung Maung Win, deputy minister in the planning, finance and industry ministry, and chairman of the Securities and Exchange Commission of Myanmar (SECM).
“Most public companies do not meet the criteria for listing on the Yangon Stock Exchange. So, a pre-listing board will be established to fill this gap,” Mr. Win says in a report by the Myanmar Times on September 15.
A second exchange can help create an “official platform for the trading of the shares in public companies”, he adds.
He did not provide a deadline for the launch.
The report says that shares of unlisted public companies can still be traded in the loosely regulated over-the-counter market.
Spokespersons for the SECM did not immediately respond to questions from Asia Asset Management.