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Laos to shortlist 20 companies for listing in its 1st stock market
The National Business Improvement Office under the Lao Prime Minister's Office will shortlist about 20 state companies this month for listing in the country's first stock market that is to be set up in 2010, the Lao newspaper Vientiane Times reported Wednesday.
The office has already compiled a list of 30 state companies among 200 in the country. This list has been sent to local organizations responsible for enterprise management and evaluation to further reduce the list to about 20, said Deputy Head of the National Business Improvement Office Sonephet Inthavong.
Of the 30 companies, there are 15 state-owned companies and the rest are joint ventures between the State and private units. Many domestic private companies also expect to be listed on the stock market.
Sonephet, who is also Head of the Coordinating Committee for Stock Market Establishment, said the office is continuing to improve companies' accounting systems so they can better evaluate their assets when the shortlist is complete.
To be registered on the stock market, a company must be profitable for at least one year. It must demonstrate transparency and good management, and have a sound business plan.
Companies listed on the stock exchange will be required to keep clear and accurate accounts because they will be examined regularly by domestic and external auditors and shareholders.
Local companies will gain enormous benefit from being listed on the stock market. They will be able to rapidly raise capital to meet their investment need through the sale of shares. Under this system, money can be raised easily and transparently.
Construction of the first stock market in Laos is expected to begin in the middle of this year. It will be situated on 450 Year Road in Xaythany district and will cost about 50 billion kip (5.9 million U.S. dollars) excluding the cost of information technology (IT) systems installation.
Xinhua
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