The Kingdom’s second-largest port, Phnom Penh Autonomous Port, is aiming to be listed on the Cambodia Securities Exchange by this November, which would help raise funds for the development of a new terminal, a senior port official said yesterday.
Hei Bavy, director general at Phnom Penh Autonomous Port (PPAP), said the port has come a long way in improving internal working systems and changing its accounting practices to comply with international standards.
“It has taken us some time for these preparations. We have made good progress since starting this project more than a year ago,” Bavy said. “With the money we get from the listing, we are planning to expand the second phase of development at a new terminal in Kandal – and the project is expected to be worth around $10 million.”
The public offering, which is being managed by Yong Yang Securities, will help increase the terminal’s capacity to 300,000 containers, from the 150,000 developed during the first phase.
Although PPAP, a state-owned enterprise, received government approval to list last year, Bavy said preparations have been under way for the last few years. He declined to reveal the size of the issue and resulting valuation of the business.
“We have to wait for the last evaluation from independent accounting firm.”
Svay Hay, president and CEO of Acleda Securities, said that state-owned enterprises can build trust among the public, as witnessed with the oversubscription of Phnom Penh Water Supply Authority.
“Many [people] trust state-owned enterprises in the Kingdom. Therefore it will be attractive, especially for income investors who focus on sustainability and high dividend yield,” he said.
In Early January 2013, the PPAP launched a new terminal in Kien Svay district of Kandal province and paid for by the Chinese. The terminal, which cost more than $28 million, is about 30 kilometres from the existing port in Phnom Penh. The port expects to generate nearly $2 million per year from charges on the servicing of cargo at the port.