Cambodia plans second-ever IPO

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CSX indexAfter nearly two years of idling, Cambodia’s stock market is set for a rare initial public (IPO) offering by a garment company, the country’s second-ever, the Wall Street Journal reported.

A Taiwanese-owned garment manufacturer is planning an up to $28 million flotation on the Cambodia Securities Exchange, tentatively set for April 2014, and received regulatory approval last week to start testing investor appetite. Industry executives and analysts say the IPO, if successful, could pave the way for a few more listings on the Cambodian bourse in 2014.

Grand Twins International (Cambodia) PLC, whose primary customer is German sportswear firm Adidas AG, plans to offer 8 million new shares to institutional and public investors for between $1.85 and $3.50 apiece, according to a preliminary prospectus. The new shares would comprise 20 per cent of the company, which made $54.9 million in revenue in 2012 mainly by exporting to apparel retailers in Europe and the US.

The listing was primarily meant to “create a public market for our stock and thereby enable future access to the public equity markets,” Grand Twins said in the prospectus. It would use the IPO proceeds to add two new production lines, grow its head count to 6,000 from about 5,600 currently, fund its working capital needs and repay bank loans.

The only listed firm at the Cambodia Securities Exchange is Phnom Penh Water Supply Authority, which was listed in April 2012. Two other state-owned enterprises — a telecommunications firm and a port operator — were slated to list by the end of 2012, but those plans have been shelved.

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Reading Time: 2 minutes

After nearly two years of idling, Cambodia’s stock market is set for a rare initial public (IPO) offering by a garment company, the country’s second-ever, the Wall Street Journal reported.

Reading Time: 2 minutes

CSX indexAfter nearly two years of idling, Cambodia’s stock market is set for a rare initial public (IPO) offering by a garment company, the country’s second-ever, the Wall Street Journal reported.

A Taiwanese-owned garment manufacturer is planning an up to $28 million flotation on the Cambodia Securities Exchange, tentatively set for April 2014, and received regulatory approval last week to start testing investor appetite. Industry executives and analysts say the IPO, if successful, could pave the way for a few more listings on the Cambodian bourse in 2014.

Grand Twins International (Cambodia) PLC, whose primary customer is German sportswear firm Adidas AG, plans to offer 8 million new shares to institutional and public investors for between $1.85 and $3.50 apiece, according to a preliminary prospectus. The new shares would comprise 20 per cent of the company, which made $54.9 million in revenue in 2012 mainly by exporting to apparel retailers in Europe and the US.

The listing was primarily meant to “create a public market for our stock and thereby enable future access to the public equity markets,” Grand Twins said in the prospectus. It would use the IPO proceeds to add two new production lines, grow its head count to 6,000 from about 5,600 currently, fund its working capital needs and repay bank loans.

The only listed firm at the Cambodia Securities Exchange is Phnom Penh Water Supply Authority, which was listed in April 2012. Two other state-owned enterprises — a telecommunications firm and a port operator — were slated to list by the end of 2012, but those plans have been shelved.

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