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Logo of Phnom Penh Post newspaper Phnom Penh Post - Garment firm to list on CSX

Garment firm to list on CSX

The Taiwanese-owned garment company Grand Twins International (Cambodia) Plc says it intends to list on the Cambodia Securities Exchange (CSX) next month, in a boost for the Kingdom’s nascent stock market.

Phnom Penh Securities (PPS), an underwriter for Grand Twins International (GTI), said yesterday the company would offer 12 million shares at $0.25 a share.

“The issuer will use the proceeds of this initial public offering to invest in new equipment and manufacturing facilities in order to benefit from the rapid growth in demand,” PPS said.

The CSX officially began trading with only one company, the state-owned Phnom Penh Water Supply Authority, which listed in mid-April last year.

The government has said it plans to list two other state-owned enterprises, Telecom Cambodia and the Sihanoukville Autonomous Port, some time this year. Officials of both enterprises did not confirm that time frame yesterday.

PPS said that as of June last year, GTI’s total assets and total capital were about $31.6 million and $27.7 million, respectively. GTI is incorporated as a 100 per cent Taiwanese company.

“Thanks to the strong commitment of the management team, combined with an improvement in the Cambodian business environment and the recovery of the global economy, the issuer has realised significant growth in both sales and profit year over year,” it said.

Ming Bankosal, director-general of the Securities Exchange Commission of Cambodia (SECC), and GTI could not be reached by the Post for comment yesterday.

A PPS official who asked not to be named said disclosure documents had been sent to the SECC last month, but the listing had not yet been approved.

Min Kyoung Hoon, deputy director-general of the CSX, told the Post yesterday that he had not received any official documents from PPS, but the time frame set to March seemed possible.

“I heard about it, but I am not sure. It may be possible,” Hoon said.

“[But] this is very good for us, because it gives the market more activity so investors will have more choice. I think this is the right time for them.”

Svay Hay, the director of broker ACLEDA Securities, said the participation of a private company on the bourse emphasised the confidence in the newly established market.

“It will be another option for investors who wish to invest in the capital market, because we will have two products,” Hay said. “I think we will have more transactions.”

Hay said PPS had not yet gained approval from the SECC.

Phnom Penh Water Supply Authority’s price was unchanged at 6,200 riel yesterday, with 854 shares changing hands, according to data of the CSX.

GTI’s sales increased about 17 per cent, from $21.86 million to $25.56 million, between mid-2011 and mid-2012.

Its net profit has risen significantly – about 52 per cent to $2.617 million during that period, and an average of 63.5 per cent between 2009 and 2011.

“The issuer projects to achieve an average annual sales growth of about 29 per cent by maintaining a net profit margin of more than 10 per cent every year,” PPS said.

“The strategy of going public is not only to help the issuer raise funds for expanding the business, but also to provide an excellent opportunity for investors to share this fruitful result with a low valuation offer.”

GTI is an Original Design Manufacturer of sportswear, focusing on sport apparel brand names as Adidas and has more than 10 product lines. Currently, GTI employs approximately 5,600 employees.

To contact the reporter on this story: May Kunmakara at
Sarah Thust at



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