Markets | Wed Apr 20, 2016
Cambodia economic park launches IPO amid nation's struggles to draw listings
A Cambodian special economic zone launched an initial public offering (IPOs) on Wednesday that aims to raise up to $11.5 million, in what will be only the fourth company to go public on the nation's bourse which has struggled to attract listings.
The Phnom Penh Special Economic Zone (PPSEZ), operator of a 357-hectare park on the outskirts of the Cambodian capital Phnom Penh, said it is offering 11.5 million new shares priced between $0.70 and $1 each in the IPO. The shares will be priced on May 10 and trading will begin on May 30.
Founded by Cambodian tycoon Lim Chhiv Ho, PPSEZ will become the first Cambodian firm to list on the bourse.
The Cambodia Securities Exchange (CSX), a joint venture with South Korea's bourse, launched in 2011 but has failed to live up to expectations as domestic firms have been reluctant to commit to the level of transparency required and have struggled to meet listing rules.
Many Cambodian firms are unwilling to provide financial statements or to comply with taxation laws, brokers and investors in the country have said.
PPSEZ's chief financial officer Fong Nee Wai said the listing could boost activity on the stock market.
"We want to participate and help the government to promote the capital market in Cambodia," he told investors and reporters at the IPO launch.
The IPO shares being offered represent 20 percent of the enlarged capital of the company. The funds will help build a new special economic zone near the border with Thailand and to repay bank debt, the company said. (Reporting by Prak Chan Thul; Editing by Amy Sawitta Lefevre and Muralikumar Anantharaman)
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