Companies Face Stumbling Blocks On Road To Stock Exchange Listing

Source: Vientiane Times

Many companies are still facing challenges in preparing to list on the Lao stock exchange, a financial advisory company has noted.

Companies are having difficulties in terms of their accounting methods and their understanding of capital markets as they prepare to list on the country’s stock exchange.

“Today’s forum aims to provide and build the understanding of business operators and people who want to list their companies on the stock exchange,” KPMG Laos Chief Executive Officer Mr Winid Silamongkol said when addressing yesterday’s Initial Public Offering (IPO) forum in Vientiane.

The forum’s focus was to help explain the role and criteria that companies must meet to be able to list on the stock exchange, especially concerning profits, outcomes, and business dealings among other things.
Accounting is a very important element of a company’s preparations because the Lao Securities Commission Office (LSCO) or the Lao Securities Exchange (LSX) must be confident that companies will hand over filings to their office that are transparent and accurate so they are acceptable to the LSCO and their shareholders, Mr Winid said.

He added that KPMG will try to hold similar events in the future in a bid to help develop the stock exchange.

It has been observed that the capital market in Laos has progressed in recent years in response to economic growth.

The Lao stock market is not as large or booming like those in Thailand and Vietnam due to the size of the country’s economy but has nevertheless made progress, Mr Winid said.

The LSX and LSCO use criteria and principles that are quite similar to capital markets or stock exchanges in neighbouring countries as they regularly share their experiences and take the strong points of each country to use at home, he added.

The capacity of the Lao stock market will improve in the future but it depends on circumstances. Only five companies are currently registered on the LSX, namely EDL-Gen, BCEL, the Lao World Public Company, the Petroleum Trading Lao Public Company and the Souvanny Home Centre Public Company, but there will be more registered companies in the near future, Mr Winid said.

Yesterday’s forum was attended by the Chief Executive Officer of the Lao Securities Exchange (LSX), MrVanhkhamVoravong, Secretary General of the Lao Securities Commission Office MsSaysamoneChanthachack, and representatives from companies and relevant sectors.

The event was organised by KPMG in collaboration with the LSX and BCEL-KT.