Lao firm takes next step towards stock market listing Times Reporters
Lao firm takes next step towards stock market listing Times Reporters
Sitthi Logistics Lao Co., Ltd. on Tuesday appointed Thailand's APM (Lao) Securities (APMLAO) as their financial advisor for business structure development in preparation for listing on the Lao stock exchange next year.
The agreement was signed in Vientiane between Sitthi Logistics Lao Co., Ltd. CEO, Mr Chanthone Sitthixay, and CEO of APMLAO, Mr Somphob Sakpunpanom.
Speaking at the signing ceremony, Mr Chanthone said he was confident that the growing demand for transportation coupled with infrastructure development would lead to a corresponding growth in the logistics industry.
This growth would in turn require better service, structured development, and sound financial guarantees.
The stock market allows businesses to trade shares in their operations so they can earn the capital they need to expand, Mr Chanthone explained.
“If we can register with the Lao Securities Exchange and sell shares in our company, we will use the extra capital to buy more vehicles for transportation and improve our efficiency,” he added.
The company also wants to grow its business in readiness for the Asean Economic Community (AEC).
Sitthi Logistics Lao Co., Ltd. was created in 2013 when the logistics operations owned by Petroleum Trading Lao Public Company split off to form a separate venture. The two companies have the same owner.
The company has registered capital of 16 billion kip and hopes to raise more in the coming years, Mr Somphob said.
Sitthi Logistics Lao Co., Ltd. currently has 79 vehicles that transport fuel and other products.
The company has the potential for growth because it earns considerable income from the transport of fuel for the Petroleum Trading Lao Public Company, as well as other products.
When Laos becomes part of the AEC next year, this business would increase, Mr Somphob said.
The Petroleum Trading Lao Public Company transports about 135 million litres of fuel around the country each year, and this quantity is expected to increase.
When Sitthi Logistics Lao Co., Ltd. lists on the Lao stock market, it will be good for the company and inspire more confidence among customers, Mr Somphob said.
The company will also have more capital so that it is better placed to compete with similar businesses, he added.
vientiane times
