Two more firms look set to list on the LSX this year
Two more firms look set to list on the LSX this year
Lao Securities Exchange (LSX) expects to list at least two companies this year, hoping that the move will give a major boost to equities trading in Laos.
LSX Chairman and CEO, Associate Professor, Dethphouvang Moularat said recently that the stock market expects to list Lao Petro Trade and Souksomboun companies this year.
The two firms have now hired professional financial advisors so as they can improve themselves to meet the probity requirements required to list on the stock market.
“The two companies have both signed agreements with APM (LAO) Securities Company to appoint it as their financial advisor,” he said.
The move is one of the best reflections that the two companies have shown interest to raise capital from the stock market, he noted, which can offer them with readily available investment funds.
Petro Trade is one of the new fuel distributors in Laos. The company has continued the expansion of petrol stations in and around the country over the past few years. It has also been in the Lao media spotlight on numerous occasions over the past years, helping to raise the profile of the energy firm.
However, representatives of Petro Trade were not available to comment on the plan to list on the Lao securities exchange. None the less, observers said that the energy firm is looking for long term investment funds to expand its businesses amid rising competition in Laos.
There are more than three major fuel distributors in Laos. Demand for fuel consumption has seen a rapid increase over the past years due to the increasing number of vehicles and investment in the country.
Souksomboun is one of the major cement producers in Laos. The company has invested more than US$330 million to invest in the construction of a cement processing factory. The company also is investing in the construction of a cement factory in Thailand, aiming to expand its market into the northeast parts of Thailand.
Associate Professor, Dethphouvang said that three other companies have also expressed interest to list on the stock market. However, he was not able to provide the names of the companies as they have not yet appointed financial advisors.
According to a study, there are some 38 firms in Laos which have the potential to list on the stock market at some point in the future. So far, 21 of them have expressed interest to list on the market as they are looking for investment capital to expand their businesses in the country amidst growing investment opportunities.
One of the major challenges for Lao companies to list on the stock market is most of them having no experience or knowledge about stock market trading. Many Lao companies have to improve their accounting and auditing systems so as they can perform business transparently, making it easier for shareholders of the company to inspect their business operations.
The LSX was established at the end of 2010 and began trading in early 2011. At present, there are three companies, namely BCEL, EDL Gen and Lao World listed on the stock market.
The LSX took a major step forward recently, introducing online trading services last month, making it easier for investors to trade the equities.
vientiane tímes
