Ayeyarwady Bank Ltd has applied to MyCo (Myanmar Companies Online) for changing to a public company, according to the Directorate of Investment and Company Registration (DICA).

“When a business becomes a public company, there will be more it has to follow under the Companies Law. There are significances for a public company. Shares can be offered to members of the public. I mean for a private company, shares can only be transferred among their own shareholders. Non-public companies cannot offer shares to the public. For a public company, it can offer shares to others,” said an official from DICA. 

“To make share offers, prospect indicators have to be complied such as capital investment, founders and future projects. Such good prospects need to be mentioned. Next, the indicators must to be submitted to the Securities and Exchange Commission of Myanmar. Then, DICA will give approval within 60 days as per the law. After approval, the offer must be presented to the company registrar. Then, share offers can be made. The public members can buy shares. Only then, will a public company be able to expand its business. This is one advantage. Shares can be spent in the projects it is going to implement. If there is any failure, money has to be returned to the shareholders. If the money cannot be refunded, interest payments must be made in accord with the law. The Companies Law has such provisions,” the official said.   

He added that Ayeyarwady Bank Ltd had applied to MyCO for its change into a public company and made a newspaper announcement, but it had not become a public company yet.