Lanexang Securities Public Company

Introduction

Lanexang Securities Public Company (LXS) is a joint venture between the Sacombank Securities Joint Stock Company (Sacombank-SBS) and the Lao Development Bank (LDB). It was officially established on the 17th of November, 2010 with an initial chartered capital of KIP 100 billion (approximately USD12.50 million). LXS business model is currently structured into three core areas: Brokerage, Corporate Finance Advisory, Private Equity and Research.As of November 2010, LXS was the first securities company operating in Laos.
The co-founder Sacombank Securities Company (Sacombank-SBS) is a wholly-owned subsidiary of Sacombank Group. It was established in September 2006 with an initial chartered capital of VND 300 billion (approximately USD16.67 million), undertaking brokerage, stock depositary, underwriting and investment business. LaoDevelopment Bank (LDB) was established on the 9th of April, 2003 by consolidating 2 previous state owned commercial banks namely Lao May Bank and Lane Xang Bank. The Ministry of Finance of Laos currently owns 100 percent of LDB.

As the first securities company in Laos, Lanexang Securities Public Company has introduced various brokerage activities to this newly-born market. Our brokerage department commits to provide existing and potential clients possible financial services with the most satisfaction. We promise to accompany our clients to the prosperous future.

With the diversified, advanced brokerage products & services as well as all system of any offices operating in Laos nationwide, LXS has been well performing its role as a key securities brokerage house for all investors with differences in investment need, geographic location and client classification ( individual vs. institution, domestic vs. overseas ).

Services

Brokerage
Corporate Finance Advisory
Investment Banking
Research

Objective

To generate maximum profit to our shareholders and customers,
To provide financial services such as, among others, brokerage service and corporate advisory services to any business in the Lao PDR, including both local and foreign investors.
To continuously develop Lao financial markets in order to improve the economic relations between Laos and Vietnam.

Mission

It is the mission of Lanexang Securities Public Company to create values for investors via our professional financial network, and to provide our clients with the most comprehensive financial services available. We will devote ourselves to the constant evolution of our products mix and business model in accordance to the dynamic financial world toensure investors' trust and confidence.

Business Environment Overview

Since 1986, Laos P.D.R has implemented many important economic reforms to revitalize to private sectors. State-owned companies have gradually reduced their influence on the Lao economy. The government no longer maintains a central system with monopolized trades and prices. The availability of goods has improved, boosting the economic growth in the recent years. As the result of encouraged foreign incentives and lifted trade barriers, the country has received significant amount of FDIs in the last ten years. Birth of the Lao stock market will further improve the national economic growth and help eradicating poverty.

Lao Stock Market

The Lao economy has expanded rapidly in the last 5 years, urging a large amount of capital to meet the needs of investment and business expansion. The ability to mobilize funds in Lao is limited because the country did not have a sustainable capital market. Realizing the lack of long-term capital mobilizing instruments, the government of Lao collaborated with the Korea Exchange (KRX), the fourth largest market operator in Asia, in a joint venture worth $20 million to create the first stock market in Laos.
The Lao Securities Exchange was established on 10/10/2010 as an attempt to provide a new capital channel to the Lao economy, and to eventually eradicate poverty in this country. The stock market commencement is expected to take place in 11/01/2011, creating a golden opportunity for the public sectors as well as the private sectors to mobilize funds from investors and expand their businesses.
The most distinguished companies, among others, are Lao Airlines, Electricit? du Laos, Banque Pour Le Commerce Exterieur Lao, Lao Brewery Company, and Lao Telecom. The Securities and Exchange Commission is currently considering the foreign participation in the Lao stock market. Some of the foreign institutions particularly interested in this emerging market include private banks from neighboring countries and companies developing hydropower projects in Thailand, China, and Myanmar. Foreign investments’ inflows to the Lao economy, especially to the natural resource sector, has been and will still be the main driving force behind Lao economic developments and their participation is essential to the Lao economic blossom.

THREE-YEARS BUSINESS PLAN

General Target: Lanexang Securities Public Companies has the upper hand compared to other competitors for joining the Lao stockmarketfromthe beginning.While the market is still in the developing phase, our brokers and financial analyst team will have the chance to accumulate experience and apply the acquired knowledge to the Lao emerging market.LXS is aiming to be the leading securities firm in Laos within the next 3 years.

Strategy:

Develop a modern IT system incorporated with stable operating infrastructure, gaining the customer’s trust. While the pie is big enough for every player, LXS can occupy 20 to 40 percent of the market shares.

Backed by the financial strength of the LDB, Sacombank-SBS, and the Sacombank Group, Lanexang Securities can provide suitable financial products, as well as the money market and capital instruments,based on the market risk.

We have recruited a team of analysts, investment advisors with keen intelligence, graduated from Laos, Vietnam, the United States, Australia, and other foreign countries and extensive knowledge gained in Lao and foreign companies. We constantly provide trainings, either local or international; to continuously improve the quality and competency of our financial team.

Lanexang Securities research team will release reliable periodic reports, undertaking the path to become the most reliable information sources for any investor. Lanexang Securities, with much experienceobtained in Vietnam, simultaneously improves and expands consulting and brokerage services for financial institutions. LXS ambitiously aims to provide the best consulting services for Vietnamese firms operating in Laos. At the same time, it will link the SBS investment flows network from Vietnam, Cambodia and Singapore to Laos.