PHNOM PENH — A Cambodian special economic zone launched an initial public offering (IPOs) on Wednesday that aims to raise up to US$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, 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% of the enlarged capital of the company. The funds will help build a new special economic zone in Poipet town near the border with Aranyaprathet district in Sa Kaeo and to repay bank debt, the company said.
"The company also plans to invest $8.5 million to develop its new SEZ project at the Thai border, Poipet PP Special Economic Zone in Poipet, which has also been presented at the [launch]," it added.