ETL ready to list on Lao stock market

ETL ready to list on Lao stock market

Enterprise of Telecommunica-tions Lao, a major cell phone service provider, has met the requirements for listing on the Lao Securities Exchange.

LSX Chairman and CEO Mr Dethphouvang Mounlarat said i n an interview with Lao media recently that stock market officials had completed a study on ETL and learnt that the state-owned enterprise was eligible to list on the market .

“We expect to list the company at the end of this year,” he said, adding that Lao and foreign investors should prepare to buy shares in the company.

ETL will be the third state-owned enterprise to sell a portion of its shares to the public in a bid to generate funds for business expansion. The government will be the majority shareholder to maintain management control.

ETL was established on August 31, 2000, in line with government policy to expand telecommunication services in the country. The enterprise has full rights to provide both domestic and international telecommunication services under the laws of Laos.

The company had 985,000 mobile phone customers in 2010, some 3.6 percent more than in the previous year. Fixed line phone subscribers numbered 18,000, along with 3,500 internet customers.

This year ETL expects to gain 220,000 more mobile phone customers and 2,000 internet users.

The company plans to launch its 3G mobile phone network next month. Lao Telecommunication, a joint private and state venture, and Star Telecom also offer 3G services in Laos.

ETL has 914 mobile phone base stations nationwide, which provide signal coverage to 5,683 villages in 143 districts, or about 65 percent of all villages.

The company employs 736 staff and has a 37 percent market share, with earnings expected to reach 453 billion kip (US$56.4 million) this year.

Mr Dethphouvang said stock market officials were also working with the Lao Devel opment Bank but had not finished their study of the bank's operations. However, they expected the bank would list on the market next year.

A number of private firms, including the Indochina Group and Daoheuang have also expressed interest in listing on the market.

The government has reduced profit tax for listed companies, to encourage more entities to list, Mr Dethphouvang said.

The government not only wants to create options for companies to mobilise investment funding through share trading, but also expects to see greater transparency in business operations. This would enable the more effective collection of taxes from private enterprises and businesses.

vientiane times