In preparation for its much anticipated initial public offering (IPO), locally-owned Acleda Bank Plc, the nation’s largest commercial bank, is hosting two seminars at its headquarters next month.
The bank is gearing up to join the local stock market, the Cambodia Securities Exchange (CSX), after having recently obtained permission to become a publicly listed company from the central bank and the market regulator. Acleda Bank will be the first commercial bank to join the bourse.
Acleda Bank president and group managing director In Channy announced events on March 3 and 10 in which prospective investors will be briefed on the bank’s business and financial performance, the IPO’s timeline, as well as the process of buying shares.
“We are pleased to invite all public investors to invest in Acleda Bank.
“The proceeds from the IPO will be used to improve the digital banking services of the bank, among other things,” Channy said.
Han Kyung-tae, managing director of Yuanta Securities (Cambodia) Plc, the company managing the IPO, said Acleda Bank’s listing is different because individual investors will be allowed to participate.
“This is the ‘People’s IPO’,” said Han.
“We’ve worked with the bank to come up with an allotment method that enables prioritised allocation to retail investors who subscribe 1,000 shares or less.
“This IPO is a golden opportunity for retail investors to become shareholders of the most trusted and healthy bank in Cambodia,” he said.
The bank is now carrying out the book-building process. Investors’ bids can range from 15,000 riel to 17,400 riel ($3.75 to $4.35).
The final price will be determined based on the bids submitted during the book-building process. Following this, investors will be invited to subscribe Acleda’s shares at the final IPO price from March 23 to April 4.
To participate in the book-building and subscription processes, investors must obtain an investor ID and a trading account with any securities firm licensed by the Securities and Exchange Commission of Cambodia, Channy said.
“The bank expects to be listed on CSX by the end of April. As the first commercial bank to join the bourse, Acleda Bank will serve as a role model for other banks in the country looking to raise capital through the Cambodian capital market,” he said.