Cambodia’s second IPO could be delayed

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CSXA Taiwanese-owned garment maker’s plan to become just the second stock to be listed on the Cambodian stock exchange is set to be pushed back due to delays in getting regulatory approval, a person with knowledge of the deal said on April 11, the Wall Street Journal reported.

Grand Twins International (Cambodia) PLC completed taking orders for its up to $28 million IPO last month, and had been planning to list in early May 2014. Cambodia’s securities regulator was due to give its final approval for the IPO on April 11 but delayed its decision by more than a week, as officials “need some time to review the results of the book-building,” the person said.

Officials may give their approval on April 23, which means the listing – initially set for May 8 – could be delayed by “a few days,” the person added.

Grand Twins, which has production lines in Cambodia, plans to sell eight million shares, or 20 per cent of the company, for between $1.85 and $3.50 apiece, according to its preliminary prospectus. But the book-building, or order-taking process, showed that demand was tepid, and the offering is likely to be priced between $2.40 and $2.50 a share, people with knowledge of the deal said.

Interest in the Grand Twins offering has been hurt by concerns over the prospects of Cambodia’s garment industry, which is plagued by labor unrest and rising costs, the people said. Even so, they still expect the deal to go through and add a second stock to the Cambodia Securities Exchange, which hasn’t hosted a listing since the Phnom Penh Water Supply Authority’s trading debut in April 2012.

Cambodia’s stock market has foundered since hosting its first-ever listing two years ago, the $20 million flotation of state-owned Phnom Penh Water Supply Authority. 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

A Taiwanese-owned garment maker’s plan to become just the second stock to be listed on the Cambodian stock exchange is set to be pushed back due to delays in getting regulatory approval, a person with knowledge of the deal said on April 11, the Wall Street Journal reported.

Reading Time: 2 minutes

CSXA Taiwanese-owned garment maker’s plan to become just the second stock to be listed on the Cambodian stock exchange is set to be pushed back due to delays in getting regulatory approval, a person with knowledge of the deal said on April 11, the Wall Street Journal reported.

Grand Twins International (Cambodia) PLC completed taking orders for its up to $28 million IPO last month, and had been planning to list in early May 2014. Cambodia’s securities regulator was due to give its final approval for the IPO on April 11 but delayed its decision by more than a week, as officials “need some time to review the results of the book-building,” the person said.

Officials may give their approval on April 23, which means the listing – initially set for May 8 – could be delayed by “a few days,” the person added.

Grand Twins, which has production lines in Cambodia, plans to sell eight million shares, or 20 per cent of the company, for between $1.85 and $3.50 apiece, according to its preliminary prospectus. But the book-building, or order-taking process, showed that demand was tepid, and the offering is likely to be priced between $2.40 and $2.50 a share, people with knowledge of the deal said.

Interest in the Grand Twins offering has been hurt by concerns over the prospects of Cambodia’s garment industry, which is plagued by labor unrest and rising costs, the people said. Even so, they still expect the deal to go through and add a second stock to the Cambodia Securities Exchange, which hasn’t hosted a listing since the Phnom Penh Water Supply Authority’s trading debut in April 2012.

Cambodia’s stock market has foundered since hosting its first-ever listing two years ago, the $20 million flotation of state-owned Phnom Penh Water Supply Authority. 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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