ຄະນະກໍາມະການຄຸ້ມຄອງຫຼັກຊັບ
Wednesday, 21 November 2018

Securities Issuance


  1. Any companies established in accordance with Lao Enterprise Law, wishing to issue securities such as: stock or bond which an issuer uses for the purpose of fund raising in order to finance their business operations or other purposes such as: changing shareholding structure, stock dividend or share based payment. Issuance stocks of public companies shall include:

  1. 1. (Public Offering - “PO”);
  2. 2. (Private Placement – “PP”);
  3. 3. (Rights Offering – “RO”).

Any companies, wishing to issue securities should submit the registration statements for an issuance to Lao Securities Commission Office (LSCO).  The LSCO shall consider the application documents and notify the applicant of its decision in writing with 45 working days from the date of receiving the completed and correct application documents. After received the securities offering license from LSCO, the issuer and the underwriter must conduct the securities offering process as defined by LSCO. After the issue is completed and reported to the LSCO, the issuer shall list their stocks in the Exchange which complies with the listing criteria as defined by Lao Securities Exchange. To facilitate and provide the securities - trading for the shareholders and investors.

The benefit for an issuance and listed in Lao Securities Exchange as following:

- A Source of the fund raising or long-term capital from public or potential investor in order to finance their operations or extend business by without any risk on principle repayment and interest;
- Boost a company’s credibility, transparency and a positive public image for firm. Generally, listed firms are thought of as accounting, Auditing, information disclosure and good corporate governance;
- In a globalized economy, having a strong, complementary, strategic business ally adds to a firm’s competitiveness;
- Management accountability and professionalism;
- Another generally overlooked benefit of being a listed company is the pride that employees take in being part of the organization. Employee goodwill will grow if the firm is prospering, has a positive image, a good reputation and public respect. Strong employee loyalty to the company enhances its reputation;
- A listed company will get tax privileges on profit tax 5% from normal tax rate for 4 years after listing in Lao Securities Exchange;

Preparation and issuance procedure

- Preparation before issuance: Prepare financial statement and other accounting reports in line with accepted accounting standards, establish an audit committee, perform asset measurement/valuation, restructure the shareholdings and capital, reorganization such as board of directors and other committee which should consist of independent director, prepare the plan of issuance and use of capital received from the offering and other relevant document.

By discuss company information with a financial advisor in order to examine the applicant's qualifications and make appropriate adjustments in accordance with relevant requirements.