Thai-Myanmar joint-venture (JV) (between Thai broker KT ZMICO and Myanmar's KTZ Ruby Hill Securities) receives broker licence for the Yangon Stock Exchange

A Thai broker and its Myanmar joint venture partner have been awarded a broker licence for the soon-to-open Yangon Stock Exchange.

New York-based broker Auerbach Grayson & Company announced on October 20 that its Thai subsidiary KT ZMICO and local partner KTZ Ruby Hill Securities were one of four foreign brokers to receive a broker licence for the exchange, which isscheduled to open in early December.

Following a request for proposals earlier this year in which 57 companies applied to become underwriters, brokers, dealers and advisers, news of the winners has been communicated somewhat sporadically.

The promise of an announcement – initially scheduled for July – has yet to be realised.

On October 8, Daiwa Securities Group announced that it had beenawarded a provisional underwriter licence, subject to K15 billion (US$11.7 million) in paid-up capital.

The Myanmar Times then learned that eight companies had been offered conditional underwriting licences in total, including AYA Bank, KBZ Bank and United Amara Bank, with two more under consideration.

Chair of the Securities and Exchange Commission of Myanmar U MaungMaungThein said in a telephone interview yesterday that 10 companies would be granted underwriter licences, but that he could not name them until the final licences had been awarded.

He did not commit to an announcement date, but said it would be sometime in November.

This leaves little time before the exchange is due to open in mid-December. Meanwhile, winners say they are figuring out the trading regulations and trying to identify companies that meet the listing criteria, and are willing to attempt an initial public offering, or IPO.

Listing criteria were published in August and include several requirements including at least K500 million in capital, two years of profit under Myanmar Financial Reporting Standards and a minimum of 100 shareholders.

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