Ch Karnchang delays its Lao unit's listing

"Right now, the uncertain recovery in the economy affects power demand and hence the hydropower plant's income. Stock-market conditions should be more favourable next year," the source said.

The Nam Ngum 2 power plant in Laos, 28.5-per-cent owned by subsidiary South East Asia Energy, is expected to be the first cross-border listing for the Stock Exchange of Thailand. The listing had been planned for late this year.

Meanwhile, the company is now selecting a financial adviser. Other shareholders of Nam Ngum 2 are the Lao government (25 per cent), Ratchaburi Electricity Generating Holding (25 per cent) and Bangkok Expressway (12.5 per cent). Several entities hold the remainder.

Executives of the Stock exchange of Thailand (SET) and the Securities and Exchange Commission (SEC) were in Laos last year to visit the 615-megawatt project, which is expected to commence commercial operations next year.

Despite Nam Ngum 2's delayed listing, an SET source is confident the exchange will welcome the listing of two foreign companies this year, both of them in the financial sector.

The SET is now drafting regulatory rules to accommodate cross-border listing and dual listing of foreign-established companies, to increase the number of products in the Thai market.

A subcommittee consisting of representatives from the SET, the SEC and the Listed Companies Association is working on the rules and should submit them for SEC consideration in the fourth quarter.

The SET source said concerns remained over the regulatory approach to be exercised over these companies. Initially, the regulations will be based on those enforced in the companies' host countries.