Thursday, August 28, 2008

SET paves way for Indochina dual-listings


SET paves way for Indochina dual-listings


The Stock Exchange of Thailand will establish an international board for potential dual-listings in Indochina by next year.

Chanitr Charnchainarong, president of the Market for Alternative Investment, said the SET hoped to attract Thai companies operating in Vietnam, Laos and Cambodia to list on the exchange under the dual-listing project.

The SET will reach out to securities brokers in the three countries to explore possible listings in their own countries first.

Afterwards, a second offering could be made for shares on the Thai exchange, Mr Chanitr said.

Laos expects to begin over-the-counter securities trading by the end of the year, with assistance from the SET. Computerised trading is expected to start in 2010, with Laos partnering with the Korea Stock Exchange.

Vietnam, meanwhile, is viewed as a strong candidate for dual listings. Sacombank Securities, Vietnam's third-largest broker and a strategic partner of the Tisco Group, has agreed to provide advisory services to Vietnamese and Thai companies operating in Vietnam and interested in the dual-listing project.

Mr Chanitr said the Vietnamese market now had a market capitalisation of $50 billion, with 80 securities firms serving the market.

More than 30 companies attended a presentation by the SET and Tisco last week in Saigon to hear briefings about the dual-listing programme.

The SET plans similar presentations in Cambodia next month. Cambodia hopes to open its stock market next year and has signed an agreement with the Korea Stock Exchange as a partner.

''Many Thai companies have invested in Vietnam , Laos and Cambodia , and we see all three markets as posting steady growth for the future,'' Mr Chanitr said.

''The SET should take advantage of the opportunity to expand our products to cover these companies.''

Mr Chanitr said the international trading board would be separate from the main trading board. Further study was underway about rules and regulations of each exchange, accounting standards and disclosure rules.

''The board will focus first on well-known firms. In Vietnam, for instance, there are several large Thai companies operating there, including the CP Group, Amata and Siam Cement,'' he said.

''There are three other companies from the food, beverage and property sectors, as well as six non-listed companies in Vietnam that have also expressed interest to list on the SET.''

No comments: