A worker arrives at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) office tower in Dagon township, Yangon, early on September 7. The building will be home to the Golden Land East Asia Development trading company, which plans to offer shares to the public next month. Pic: Hein Latt Aung

THE founders of Golden Land East Asia Development Ltd expect to sell shares to the public in October, a director of the new trading company currently awaiting government approval said on September 10.

U Zaw Min Win, who is also vice president of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), which is setting up the enterprise at the Commerce Ministry’s request, said the company would be authorised to operate with up to K10 billion of capital.

Sales of shares, the quantity of which has not yet been determined, will go on sale for K10,000 each once the company’s prospectus is acknowledged by the Ministry of National Planning and Economic Development, U Zaw Min Win said, anticipating this would happen next month.

“We have already finalised the prospectus and submitted it to the authorities.
“Once the prospectus is approved we will invite the public to purchase shares. As soon as we have sold about K200 million worth of shares, we will start operating,” he said.

“First off, the company will focus on trading and then it will embark on new business activities, such as in the mining sector, transportation and logistics.”

U Zaw Min Win told The Myanmar Times in July the initial public offering was aimed at raising K1 billion, meaning 100,000 shares would be up for sale – hopefully in August. However, he said last week the number of shares would not be announced until after government approval had been received.

“Every shareholder, regardless of whether they are a UMFCCI member or not, is allowed to buy up to K50 million worth of shares. Those who buy over K25 million of shares are eligible for a post on the board of directors,” U Zaw Min Win said on September 10.

Nominees to the board would then face a vote by existing members, he explained, adding that the total number of directors had not yet been decided but that nine positions would be filled by the time shares went on sale.
“At the moment we are recruiting staff from general manager level to administrative positions,” U Zaw Min Win said.

Shares will be categorised as A or B depending on whether they are available for general trading or only among members of the UMFCCI, whose central executive committee is appointed by the Ministry of Commerce. The proportion of A and B shares has not yet been announced.

“The purpose of establishing this public company is mainly for trading with East Asia but also to facilitate trade with the US and Europe as well,” said UMFCCI secretary general U Sein Win Hlaing, who earlier confirmed to The Myanmar Times he will be among the directors for Golden Land East Asia Development (GLEAD).

UMFCCI treasurer U Myat Thin Aung, who is not involved in the management of GLEAD, said the success of the share offering depended largely on the public’s confidence in the board of directors.

“Confidence building between the public and the board’s members is the most important thing for the successful operation of a public company in the long run,” he said.

“Transparency is very important and those who are in management positions must be dedicated to the interests of the public company even if they also have a private company of their own,” U Myat Thin Aung said.

He added that there was the potential for conflicts of interest because some GLEAD board members owned private trading companies that would be in direct competition with the new enterprise. He did not disclose the names of those board members or companies concerned.

Golden Land East Asia Development will initially focus on exports to China, where it is intending to open its first branch office in Guangzhou or Shanghai.
U Sein Win Hlaing said the UMFCCI was also planning to set up other publicly traded companies similar to GLEAD.

One would focus on trade with India through the country’s commercial hub Mumbai, while another would target trade ties with Gulf countries, particularly the United Arab Emirates (UAE), with a trading base to be set up in Colombo, Sri Lanka.

Like GLEAD, which is to have its headquarters in the UMFCCI building, these new companies would also be based in Yangon, U Sein Win Hlaing said.