Acleda Bank Plc, the largest locally-owned commercial bank in Cambodia, is optimistic that listing on the Cambodia Securities Exchange (CSX) will attract more investors into the nascent bourse.
Acleda Bank was the first commercial bank to receive principal approval on equity securities listing eligibility review from the CSX for its securities trading.
The bank received an official letter from the National Bank of Cambodia on November 26, which allowed it to proceed with plans for an initial public offering (IPO).
It is currently holding a three-day roadshow – on January 10, 15 and 18 – to inform potential investors of the commercial bank’s viability ahead of its listing.
Acleda Bank president and group managing director In Channy said during the roadshow’s first day at its headquarters on Friday that the bank has more than 27 years experience in the financial sector since its beginnings as an NGO in 1993 with only $600,000 in capital investment.
Today, the bank’s capital has increased 700-fold, while total assets amount to about $900 million, which is a more than 9,000-fold increase, and net profit has gone up nearly 2,000-fold, he said.
“This is a new chapter for our bank – entering the stock market. Why do we need to jump into the capital market?
“Because our bank has been growing with our people for decades and now it is time to continue that growth into the capital market and let our customers invest with us on the stock market and become our shareholders.
“The issuance of Acleda [Bank’s] securities will be different from other listed companies which target institutional investors.
“We will target institutional investors and the public – individual investors – this is us sharing our growth with our people,” said Channy.
CSX CEO Hong Sok Hour said a commercial bank listing on the CSX will have a positive impact on the market. “I hope more people will invest in Acleda Bank . . . we have approved their listing eligibility.”
Han Kyung Tae, the managing director of Yuanta Securities (Cambodia) Plc, which will be handling the IPO for Acleda Bank, said: “When its IPO launches, Acleda Bank is going to be the first and the only bank in Cambodia that is owned by Cambodians.”
Channy said the bank is waiting for approval from the SECC and expressed hope that it will list early in the second quarter of this year.
“I think that it will not take long to get approval from the SECC because we have prepared very well for the listing and have submitted all the relevant documents to the regulator.
“I think we will start trading no later than April this year,” he said.