Myanmar Strategic Holdings headed for London listing to raise US$4.3M

Mon Aug 21, 2017 - 3:15am GMT+0000
Myanmar Strategic Holdings, London Stock Exchange, LSE

Myanmar Strategic Holdings, London Stock Exchange, LSE

Myanmar Strategic Holdings (MSH), a tourist hostel and language school operator, is looking to raise US$4.3 million on its London Stock Exchange debut which is slated for next week.

The IPO would value Myanmar Strategic Holdings at an estimated market capitalization of US$22.7 million, with its ticker symbol being SHWE.

Enrico Cesenni, the Founder and Chief Executive of MSH said, “I am pleased to announce our intention to float on the London market. The listing and new funds will initiate a transformational period for us, as we prepare to scale up our operations in Myanmar.”

According to MSH, the capital will be used for expansion in Myanmar’s fast-growing consumer sector, as well as to grow the company’s existing portfolio to 20 locations in the next three years.

“Myanmar represents an excellent opportunity, both for the local people and for investors,” said Cesenni. “Its re-emergence after years of isolation means that it is now enjoying a rapid period of growth and development as it convergences with its Southeast Asian neighbors.”

Established in 2013, MSH initially specialized in the hospitality industry. Recognizing the burgeoning travel industry in Myanmar, the company open up boutique hostels to fill a gap in the market for quality budget accommodation.

The concept mixes private and shared rooms with a sizable food and beverages area on the bottom or top of the building where like-minded travelers can share experiences, partake in activities, meet new friends and share conversations.

The company currently has 3 boutique hotels in Bagan, Mandalay, and Inle Lake, known under the brand label Ostello Bello which is also present in Italy, positioning itself as a premium all-inclusive hostel.

The company in 2014 has also expanded its business into the education sector, having acquired the rights to develop Pearson’s English language learning franchise Wall Street English which is an established brand spread across China, Thailand, Vietnam, and Indonesia.

“As the country’s urban population increases and average consumer incomes continue to rise, preferences are shifting towards higher quality products and experiences. The country has the potential to be the next great economic growth story.”

The company now says it plans to focus more widely on the country’s burgeoning consumer sector.

“With an established track record of execution in Myanmar, extensive experience in investment management, advisory and deal making, as well as with the capital available to fuel the development of the group, we now look forward to helping our business and their local communities plan for the future and unlock their potential.”

The listing will provide UK investors exposure to resurgent Myanmar consumer sector and its anticipated growth in discretionary spending.