Lao Cement Industry eyes stock market listing
Lao Cement Industry eyes stock market listing
Lao Cement Industry Co., Ltd., the largest cement producer in Laos, is planning to list on the Lao Securities Exchange at the end of this year.
“The cement company is one of several that have expressed interest in listing on the stock market,” Lao Securities Exchange Chairman and CEO Assoc. Prof. Dethphouvang Moularat told Vientiane Times on Wednesday.
The stock market made an official announcement in its media release on Wednesday that Lao Cement Industry plans to list in the near future, but does not give any timeframe.
The company's Director Advisor, Mr Somphent Mounthaly confirmed on Wednesday Lao Cement Industry had submitted a proposal to list at the end of this year after eight months of preparations.
“We have hired consultants to help us to prepare for stock market listing,” he said, adding that the necessary paperwork was about 85 percent complete.
Mr Somphent said the company expected to trade shares on the stock market at the end of this year, but could not disclose how many shares would be available for sale to the public.
He said the company was mobilising US$50 million in funding to expand its production capacity from 1 million to 2 million tonnes annually as the demand for cement in Laos was increasing by about 25 percent annually due to rapid economic growth.
At present, the company produces about 700,000 tonnes of cement a year despite having a production capacity of 1 million tonnes, Mr Somphent said, adding that an increase in output would enable the cement maker to expand its domestic market.
There are six cement factories in Laos, producing about 1.5 million tonnes a year. Lao cement factories supply Vientiane and the provincial capitals of Khammuan and Savannakhet. Some of the provinces that border Thailand import cement from that country. Vientiane suffered a shortage of cement earlier this year, forcing the authori ties to import stocks to rein in rising prices.
According to the Vientiane Industry and Commerce Department, Lao cement faces strong competition from im ported cement as imported products are much cheaper, which will pose challenges for the Lao cement industry when the country joins the Asian Free Trade Area in 2015.
Analysis shows Lao cement makers will have to adjust their production costs to survive in a free market. One of the main reasons for the high price of Lao cement is the relatively small quantity produced.
vientiane times
