Source: Khmer Times / Wednesday, 20 April 2016 by Sok Chan
Phnom Penh Special Economic Zone (PPSEZ) Plc. yesterday launched a public roadshow for its initial public offering (IPO) for its June 13 listing, drawing more than 150 participants, including private investors, executives, bankers and diplomats.
The zone’s chief financial officer, Fong Nee Wai, said the PPSEZ would list about 11,575,000 shares, or 20 percent of the company, on the Cambodian Stock Exchange (CSX) with the aim of raising about $15 million. The money will fund a new SEZ in Poipet.
The five-day book building ends tomorrow and the roadshow was part of the company’s strategy to attract a wide range of investors across all segments of the market. Subscription results will be announced on May 26.
Mr. Fong said the PPSEZ was setting a low price because it will be only the fourth firm to list on the CSX. “The indicative price range for the bookbuilding is from $0.70 to $1 per share. The total market capitalization of Phnom Penh SEZ would be from about $40.5 million to $57.88 million,” Mr. Fong said.
The zone’s chairman, Lim Chhiv Ho, said the 10-year-old company was the leading SEZ in the country and was the leading destination for Japanese investment in the Kingdom. With a total investment of $460 million, the SEZ has changed the country’s commercial landscape and become a blueprint operation for attracting international hi-tech companies, she said.
“Since its creation, our company has never stopped growing and evolving. Year after year, we have faced many challenges and we have successfully managed them all.
“Going public is a major event and a dream come true for business owners. It was not an easy road. Our IPO launch today is a significant sign of confidence in the market, in our business, and in a prosperous future for Phnom Penh SEZ, for our investors and for Cambodia.”
President and CEO of brokerage firm Acleda Securities Svay Hay told Khmer Times recently that offering a discount was a good strategy for attracting investors. PPSEZ was attractive because it already had substantial public investment and it would also help attract interest to the CSX, Mr. Hay said.
“The price is relatively low compared to the recent trading price of all listed stocks on the market,” he said. “So the PPSEZ’s offering price shall be very attractive for public investors.”
One potential investor at the roadshow, Yech Cheavlay, told Khmer Times the PPSEZ was a more solid company than the other three listed on the CSX and was attractive due to the discount being offered. “I will buy about 2,000 to 3,000 shares. This company has Japanese investment, so I would invest without any concern.”
As of June last year, Japanese firms have invested $279 million in 106 projects, 67 of them in special economic zones, according to the Council for the Development of Cambodia.
PPSEZ CEO Hiroshi Uematsu said the zone now hosted 76 international companies on a modern, fully equipped and safe industrial site covering 357 hectares and employing more than 16,000 people.
“Year after year, our business model has proven itself,” he said. “We have successfully attracted major groups such as Ajinomoto, Minebea and Denso from Japan, Laurelton Diamonds and Coca-Cola from the US and more recently, Toyota Motor to our bonded warehouse facility.”
“Our company is the number one destination for Japanese investment in the country, with 43 Japanese companies… They have contributed immensely to the diversification of the Cambodian economy.”