PNGX to adopt new listing rules and increase standard

Papua New Guinea’s national stock exchange (PNGX) will adopt new listing rules from 03 July.

Chairman David Lawrence said the new listing rules were a key step towards the development of a more effective secondary market in the country.

“They contribute to ensuring PNG has a world-class capital market that is internationally respected and recognised,” he said.

“PNGX’s listing rules govern the issuers listing and quotation of securities, continuous disclosure obligations and some aspects of a listed entity’s conduct.

“All companies listed on PNGX are required to comply with the Listing Rules.”

Lawrence said the existing PNGX listing rules were introduced in April 1999 and were closely based on the listing rules of the Australian stock exchange.

“They were last amended in November 2012,” he added.

“The new listing rules provide a modern framework and market structure meeting the highest world standards.

“The proposed listing rules were released for consultation last October.

“The new listing rules were largely unchanged from the consultation version.”

New criteria for a company to qualify for listing are set out in the rules.

In brief, they are:

*Working capital of at least K300,000(US$85,000);

*A profit for the last three full financial years of at least K1 million (US$28 million) and K500,000 (US$141,000) in the previous 12 months or assets of at least K4 million (US$1.1 milion);

*The company must have at least 200 shareholders; and,

*The directors must be fit and proper. PNGX general manager Elizabeth Wamsa welcomed discussions with companies considering listing.

“With the new extractive industries coming on line shortly and growing demand for new opportunities from investors, the market sentiment will be ideal for listing,” she said. Lawrence thanked PNG Securities Commission for their support and approval of the new rules.