Myanmar logistics firm Ever Flow River Group to list on YSX in March

Ever Flow River Group Public Co (EFR) has received approval to list on the Yangon Stock Exchange (YSX) on March 20, according to an announcement by the local bourse on February 28.

The listing, which will result in the sixth company on the YSX, is in accordance with Section 41(c) of the Securities Exchange Law and Section 7 and 8 of the Securities Listing Business Regulations. The share price will be announced on March 19.

EFR provides logistics services including shipping, air freight, warehousing, containerisation and distribution. It was founded in 1998 by chair U Kyaw Lwin Oo.

The company plans to invest in and develop the country’s logistics infrastructure under the National Logistics Master Plan and recently restructured to sharpen its focus on logistics.

In 2017, Hlaing Inland Terminal & Logistics Centre Co was incorporated as a subsidiary under EFR. The joint venture with Lan Pyi Marine said the following year that it plans to invest US$46 million in an inland terminal logistics center near the Shwe Lin Ban industrial zone in Yangon. The 40-acre project is to comprise a logistics centre, bonded warehouse, inland container depot and a seven-storey office building.

The company is also developing the Ever Flow River Logistics and Distribution Center in Mandalay in line with the National Logistics Master Plan.

Following the restructuring, EFR registered more than K10 billion in revenue for the financial year ended March 31, 2019, and reported earnings of K2 billion during the same period, reversing a K3 million loss in FY2017-18, according to its prospectus.

U Kyaw Lwin Oo will own the largest stake of around 29 percent, or 5.8 million outstanding shares in the company after its listing, according to its prospectus.

Under a share subscription agreement in June 2019, Chang Yang Development Co will subscribe to 1.7 million shares of EFR for K4.3 billion, or K2500 per share.

Chang Yang is subject to a post-listing lock-up period, during which it is restricted from selling or transferring its subscription shares for a duration to be defined by EFR or the YSX, the prospectus said.

The listing of EFR comes just as foreigners are expected to be able to trade shares on the YSX. Just last week, U Htay Chun, a Member of the Securities Exchange Commission of Myanmar, told The Myanmar Times that details on when foreigners would be able to buy and sell YSX company shares would be announced in March and that trading would be permitted in the same month.

The SECM in July 2019 said foreign individuals and locally-registered entities would be permitted to invest in up to 35pc of the shares of the companies listed on the YSX but did not specify a date.

There are currently five companies listed on the YSX: First Myanmar Investment Co, Myanmar Thilawa SEZ Holdings, Myanmar Citizens Bank, First Private Bank and TMH Telecom, which listed on the YSX in February 2018.

Two other companies, Myanmar Agro Exchange Public Ltd, which built the Danyingone wholesale market, and hydro-engineering company Great Hor Kham have also been attempting to list on the YSX, The Myanmar Times understands.

Another company, Myanmar Agribusiness Public Corp, has also said that it is planning to list on the YSX after 2020.

At current levels, the YSX has a market capitalisation of over $400 million. It was launched in December 2015 and trading started from March 2016.

Source: Myanmar Times

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