RANGOON — Myanmar Citizens Bank (MCB), in which the Ministry of Commerce holds a minority stake, is scheduled to begin trading on the Yangon Stock Exchange (YSX) on Aug. 26, after approval was issued on Aug. 12, Thet Tun Oo, senior executive officer of the YSX, told the Irrawaddy.
MCB has been listed since December, when the YSX opened. Its base share price will be announced on the YSX website the day before trading begins.
The bank was founded in 1991, initially to process foreign exchange for exporters, at a time when this service was limited to two state banks in Burma. The Ministry of Commerce held a 55 percent share till 2011 —when the foreign exchange market was liberalize. Thereafter, its share lessened year by year.
The ministry’s stake in MCB now stands at only 10 percent, although Toe Aung Myint, permanent secretary of the Ministry of Commerce, chairs the bank.
Maung Aung, senior economist and independent director at MCB, said that, although the base price has yet to be decided, he expected it would be less than other listed companies’ prices.
“I expect that the base price would be less than 20,000 kyats per share (US$17)—potentially 18,000 kyats ($15)—but we still need to discuss it with the YSX,” he said.
“Because MCB has been semi-government owned, it is strong for investors,” he said.
He mentioned that shares were sold for 5,000 kyats when the MCB was founded in 1991. At that time, its capital was 1 billion kyats.
MCB’s authorized share capital is now 75 billion kyats ($63 million), with 52 billion kyats ($43.7 million) in paid-up capital: 5.12 billion kyats ($4.3 million) from the Ministry of Commerce and 46.88 billion kyats ($39.4 million) from the public, according to MCB’s website.
Five companies have been listed on the YSX since December: First Myanmar Investment (FMI), Myanmar Citizens Bank, Myanmar Thilawa SEZ Holdings Public Limited (MTSH), First Private Bank and Great Hor Kham. However, only FMI and MTSH have traded since then.
As of August 15, the YSX has a shares volume of 4,099, with a total value of 116 million kyats ($97,522). YSX’s market capitalization is now at 633,102 million kyats ($532.3 million), according to its website.
