The disclosure documents necessary to list on the forthcoming Yangon Stock Exchange have now been released.

Companies intending to list can pick up the documents from the Securities and Exchange Commission of Myanmar’s offices, an official said yesterday.

“If public companies want to sell their shares on the stock exchange, they need to disclose information laid out in the forms and return them to us,” he said. “The commission will help with supporting companies, but the companies will need to disclose information we want to know, and return it to us.”

The Yangon Stock Exchange is set to be launched in December, after being delayed ostensibly to avoid clashing with the November 8 election. A basic set of listing criteria was published in state media last month, but companies intending to list must meet the detailed requirements of the Securities Exchange Commission of Myanmar (SECM). After meeting the criteria, companies will be able to conduct an initial public offering on the exchange, allowing the public to buy shares.

SECM member Daw Tin May Oo said the notification 2/2015 sets out terms governing the IPO, and follows the letter of the law.

“These are the more detailed rules of the Securities Exchange Law 2013. Companies must follow these rules before conducting an IPO,” she said yesterday, adding there are plans to publicise more information shortly about the exchange.

In an announcement, SECM chair Dr Maung Maung Thein said that a listing public company must submit the prospectus and then apply for confirmation within 60 days.

The prospectus must include the process of selling the shares, information about the planned IPO, a history of the company, information about its main activities, market positions and risks, among other information.

Additional information will be requested when a prospectus is incorrect or incomplete, or if a new situation arises that could possibly affect investors after it was first submitted. The company must also advertise its prospectus after receiving confirmation from the SECM.

There are also rules on when a prospectus is required.

The SECM has also announced rules aimed at smoothing electronic recording of securities transfers, in notification 1/2015.

The Yangon Stock Exchange is to be opened in the former Myawaddy Bank headquarters at the corner of Merchant and Sule Pagoda roads in downtown Yangon. It is owned by Japan’s Daiwa Institute of Research, Japan Exchange Group and state-owned Myanma Economic Bank.

Myanmar has an existing over-the-counter stock market, though it is seldom used. Set up in 1996, the Myanmar Securities Exchange Centre is a joint venture between Myanma Economic Bank and Daiwa Securities Group. It provides for trading of two shares on an over-the-counter basis, as well as investment opportunities for government Treasury bonds.

http://www.mmtimes.com/index.php/business/16732-prospectus-forms-available-for-ipos.html