The Lao Securities Exchange (LSX), one of the youngest stock markets in Southeast Asia, plans a ten-fold increase in trading turnover over the next five years.
It also plans to double its market capitalisation to US$2 billion and increase its listings to 100 companies from four.
Chairman and chief executive Dethphouvang Moularat said the LSX also planned to boost its average daily trading value to 180 million baht by 2019 from 18-20 million now.
Petroleum Trading Lao Plc (PTL) today becomes the fourth company to trade on the bourse alongside Banque Pour Le Commerce Exterieur Lao, EDL-Generation and Lao World.
PTL raised 1 billion baht from its initial public offering (IPO), with half coming from Thai investors and half from Lao and foreign investors.
The LSX, which has operated for only four years, expects to add two listings next year.
Mr Dethphouvang said the bourse has geared towards setting dual-listing rules with other stock markets, particularly through its close ties with the Stock Exchange of Thailand (SET).
The Laotian government is still considering a plan to privatise its state enterprises as an option to raise funds through the stock market, he said.
Privatisation is good short-cut to boost market capitalisation, Mr Dethphouvang said.
"Many private companies have great potential to seek listings, as we're in the early stage of development," he said.
"I assure investors of our credentials concerning rules, regulations and financial information disclosure of listed firms."
SET president Kesara Manchusree said the SET and the Securities and Exchange Commission were adjusting the dual-listing rule to allow foreign firms to list on the SET while listing on other Asean markets.
Sompop Sakpanpanom, chief executive of APM Lao, the financial adviser of PTL, said next year alone the company planned to bring two new IPOs to list on the LSX — Suwanee Group, a building and construction materials trading company, and Pongsawan Bank.
Suwanee plans to be the first dual listing on the SET and LSX, he said.
Mr Sompop said APM Lao, a subsidiary of APM Asset Management, planned to bring 15 IPOs to list on the LSX. The company has been appointed financial adviser for many companies.
"The LSX can be an interesting market for investment in light of its low price-to-earnings ratio of 9-10 times, with attractive dividend yields of up to 8-10%," he said.
In Thailand, APM plans to make five to seven new IPO deals a year.