TMH Telecom down 7.7pc on first week of listing
SHARES of TMH Telecom Public Co. fell 7.7 percent in its first week of trading. The shares, which first traded on the Yangon Stock Exchange (YSX) on January 26 at K3,250 each, close Thursday at K3,100. More than 23,000 shares have exchanged hands so far this week.
Shares of TMH Telecom hit a low of K3,000 on Wednesday. At its current level, TMH Telecom is valued at K37.9 billion.
“Shares sold during the Initial Public Offering [IPO] stage usually see high demand. So, the share price is expected to be higher. But we will have to wait and see if that price holds once they begin trading on the stock exchange,” said U Nyo Myint, vice chair of KBZ Stirling Coleman Securities.
TMH Telecom is actually the first YSX company to offer new shares on the stock exchange under an IPO. It sold a total of 12.2 million shares, raising K1.6 billion in proceeds. The first four listings on the YSX were by way of introduction of existing shares.
Executives of TMH Telecom are not worried though. “Now that we are a listed company, we will be expanding into many new businesses. As such, our share price will rise and fall depending on the situation as well as investor sentiment in the market. It will create a healthy trading environment for us where our shares are traded based on market value,” U Thiha Lwin, executive director of TMH Telecom, told The Myanmar Times when the shares first started trading.
TMH Telecom provides engineering services for mobile networks, fiber connection projects and mobile stations. It also provides fiber installation and maintenance services, topup cards production and distribution and video conferencing technology. The company has a factory in Yangon and Pyin Oo Lwin and branch officers in Yangon, Mandalay, Naypyitaw, Lashio, Myinmu, Muse, Pyay, Gyobingauk, Kawhmu, Kyaukme, Nawngcho, Myanaung, Hinthada, Kutkai, Pathein, Monywa and Maubin.
The Myanmar Stock Price Index closed Thursday at 459.43, with just 4,564 shares in all five listed companies traded. Trading volumes on the YSX are expected to pick up once the new Myanmar Companies Law, which was approved last December, is implemented. Under the new legislation, foreigners are expected to be allowed to participate on the YSX, taking stakes of up to 35pc in the listed companies.
Meanwhile, a sixth company, Myanmar Agro Exchange Public Ltd, which built the Danyingone wholesale market, is currently attempting to list on the YSX, The Myanmar Times understands.
‘Shares sold during the Initial Public Offering stage usually see high demand. So, the share price is expected to be higher.’ U Nyo Myint KBZ Stirling Coleman Securities