TMH Tele­com down 7.7pc on first week of list­ing

The Myanmar Times - Weekend - - Business - HTIN LYNN AUNG htin­lyn­naung@mm­

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

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