PAS Launches IPO Book-Building before Listed in Late May

The Sihanoukville Autonomous Port (PAS) has launched a book-building to get the initiative public offering (IPO)'s price per share ahead of scheduled listing in stock exchange in late May.

The information was made in a recent roadshow attended by Economy and Finance Under Secretary of State H.E. Ros Seilava, PAS Director General H.E. Lou Kimchhun, Director-General of the Securities and Exchange Commission of Cambodia H.E. Sou Socheat, and a number of investors.

During the roadshow, the PAS offered price between US$0.88 and US$1.29 per share for investors to make book-building. The final IPO price will be selected in May 2.

As planned with offered price US$0.88 to US$1.29, the PAS is going to issue 21,442,992 shares, about 25 percent of the company's capital of US$105 million, to raise capital of US$18.85 million to US$27.74 million.

The Royal Government of Cambodia through the Ministry of Economy and Finance will control 75 percent of ownership after post-IPO, 22.5 percent controlled by public investors, and other 2.5 percent invested by employee stock ownership programme.

PAS assures a guaranteed annual dividend yield of at least 5 percent in the first three years to all public investors.

The IPO proceeds are for the company's business performance with estimated US$27 million is needed to expand capacity of the PAS including purchasing land to build inland containers depot, building new container yard, procuring gantry crane, procuring truck and trailers, and expanding road.

As we noticed in the roadshow today, there are a lot of people and investors interested with the PAS' IPO, so I hope that PAS' shares will receive more support from investors, said H.E. Lou Kimchhun. PAS, the country's deep seaport connected to ports in ASEAN and the region, is the main attractive point to gain more support when IPOs are offered.

H.E. Sou Socheat shared that the presence of new companies in the stock exchange markets reflects the development of the Cambodia Securities Exchange (CSX) and build investors' confidence.

When companies issue shares one by one constantly, confidence on market started building up and boosted more biding activities in the market, he continued.

Once listed in the CSX, PAS will be the fifth company joining Phnom Penh Water Supply Authority, Grand Twin International, Phnom Penh Autonomous Port, and Phnom Penh Special Economic Zone.

Source: Agency Kampuchea Press