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Listed companies beauty queens: LSX official
Public companies listed on the Lao Securities Exchange (LSX) will become as well known as beauty queens, a top stock market official has predicted.
LSX Chairman and CEO Mr Dethphouvang Moularat made the comment on the benefits of listing on the exchange after the opening ceremony of the Listing Promotion Seminar held at the stock exchange in Vientiane yesterday.
The seminar, which was made possible through cooperation between the LSX and the Korean Exchange, was one of the first steps the joint venture will take to attract more Lao enterprises to list on the market.
At present, there are only two public companies - BCEL and EDL Generation - listed on the LSX, which began trading earlier this year.
Mr Dethphouvang said listed companies would benefit from exposure in local and international media as information on the companies would be provided to potential investors.
He also said companies would become more transparent after listing on the exchange, adding that they must meet certain standards before being granted permission to list.
“The stock market is the final scrutiny stage for a listed company; before that it is scrutinised by the LSX Commission,” he told Vientiane Times .
He also said Lao companies would be able to mobilise substantial capital to expand their business within a short period of time by selling shares through initial public offerings.
Mr Dethphouvang said the seminar would provide information about what businesses must do to list on the exchange so they can prepare to meet the requirements for listing.
Representatives from 35 state and private enterprises and senior government officials attended the half day seminar.
Mr Dethphouvang said several companies, including ETL (a state-owned telecom-munications company) and Indochina Group (which operates a cassava powder processing factory in Vientiane), have expressed interest in public listing.
“ETL wants to list on the market by the end of this year,” he said, adding that the commission will first inspect the companies to check that they meet the requirements.
The LSX is a joint venture between the Lao government and the Korean Exchange. The government established the stock market as a tool to help state and private firms to mobilise long-term investment capital, as banks can only provide short-term investment funds.
The resulting business expansion is expected to create more jobs. The government is pushing expansion of the private sector as it is the engine of economic growth. Laos is aiming for economic growth of at least 8 percent per year over the next five years.
vientiane times
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