Deputy Finance Minister Dr.Maung Maung Thein told Mizzima that the initial opening price of FMI stock on the Yangon Stock Exchange (YSX) could be 26,000 Kyats.
“The real price of FMI stock is 35-36,000 kyats per share so the opening price on the stock exchange must be based on a realistic price. According to our rough calculation, its opening price will be 26,000 kyats,” he said.
Yangon Stock Exchange will open on 25 March. FMI Co. Ltd. owned and led by real estate tycoon Serge Pun (aka Thein Wai) will be the first stock traded.
Previously Dr.Maung Maung Thein told media that FMI’s opening price would be traded at around 20,000 kyats. He elaborated that the opening price must be calculated on prices dependent on the time.
“There are about 4 methods in calculating the opening price based on realistic prices but they are not yet appropriate for our market at the moment. So we use the ‘historical method’ in this regard which bases prices on three ‘points in time’; they are the price before being listed, the price at the time of announcing to be listed and finally the current price. This opening price is the average of these three prices and is the opening price of the shares. Fluctuations in the price will be determined by the market,” he said.
Dr.Maung Maung Thein went on to say that there were over 230 public companies in Myanmar and about 30 of them were blue chip companies. Besides FMI Co. Ltd., which will be traded on the opening day of the Yangon Stock Exchange, the exchange commission has selected 5 more public companies for trading in the market in the future.
FMI Co. Ltd. will trade its shares on the opening day of the Yangon Stock Exchange and later Thilawa Special Economic Zone Public Company (MTSH) will follow suit followed by Myanmar Citizens’ Bank, First Private Bank and Myanmar Agribusiness Public Corporation later.
Dr.Maung Maung Thein said, “There will not be much of a time gap between them in trading their shares on the exchange.”
Moreover, Securities companies will serve as intermediaries and brokers between these listed and traded public companies and their shareholders. These securities companies will be KBZ Stirling Coleman Securities, Aya Trust Securities, CB Securities and KTzRH Securities.
Yangon Stock Exchange was formally opened on December 9, 2015, at the office of the former Myawady Bank headquarters situated on the corner of Merchant and Sule Pagoda Streets. The exchange is jointly owned by Japan and Myanmar and has authorized capital of 30.2 billion kyats.