PNG Government Encourages Foreign Companies to List on Stock Exchange for Capital Market Growth

The Minister for International Trade and Investment, Richard Maru, has announced that the Papua New Guinea (PNG) Capital Market Summit will take place on Monday, May 22nd this year. The minister has directed The Securities Commission of PNG to work with key stakeholders, including the Asian Development Bank, Bank of PNG, the Port Moresby Stock Exchange, and all capital market players to formulate a new 10-year development plan for the Capital Market of the country.

The objective of this initiative is to ensure that PNG has a world-class Capital Market that is internationally respected and recognized by having a Market structure and regulatory and governance structure that meets the highest world standards to attract companies to list on the Stock Exchange. Minister Maru encouraged foreign multinational companies operating in PNG to list on the Port Moresby Stock Exchange, emphasizing the importance of having a Stock Exchange in a capital market and a regulator that’s highly respected by the market both in PNG and globally.

By encouraging foreign listed companies to have a secondary listing in the PNG National Stock Exchange, the minister believes the Capital Market of PNG can grow further. He believes that more activity is required to encourage people to trade around the market size, which currently has a market capitalization of around 106 billion.

According to the acting chairman of the Securities Commission of PNG, James Joshua, there are only 12 companies listed on the stock exchange at the moment. Therefore, the new proposed Capital Market development plan will be formulated with input from industry and international experts. It is expected that in the June session of Parliament, amendments to the Securities Commission Act of 2015 and the Capital Market Act of 2015 will be introduced to begin the reform process.

Minister Maru thanked Santos, a major international company that listed, and believes that if they can do it, there is no reason why other companies cannot list on the Port Moresby Stock Exchange. The Minister wants to encourage more investors to invest in Papua New Guinea and sees the development of the Capital Market as a significant step in that direction.

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