Cellcard's anticipated initial public offering (IPO) is set to generate a lot of interest from investors as the first telecoms company to issue shares on the Cambodia Securities Exchange (CSX), industry insiders predict.
The subscription period for the IPO – planned for the Main Board – runs from May 2-31, according to underwriter SBI Royal Securities Plc, which like Cellcard, is a member of the locally-owned Royal Group of Companies Ltd.
Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat told The Post on May 16 that the firm plans to issue 52,875,924 shares, which CSX CEO Hong Sok Hour on the same day suggested should raise “no more than $30 million”.
Class A shareholders of the company will be guaranteed a dividend of seven per cent per annum for the first five years, according to Socheat.
Cellcard, whose legal name is “CAMGSM Plc”, on April 4 had received approval in principle from the Non-Banking Financial Services Authority (NBFSA) Council for the listing.
The SERC’s Socheat remarked that investors will become all the more interested in the securities sector as a result of Cellcard’s presence there, which he credited to the “strong support” of its customers.
“CAMGSM Plc’s IPO will not only enable the company to mobilise local financing and expand its operations, but also maximise efficiency of fund utilisation and increase liquidity in Cambodia’s financial markets,” he contended.
The CSX’s Sok Hour shared Socheat’s sentiment that Cellcard’s position as a prominent telecoms company worth “more than $1 billion” would attract public interest in the local stock market, commenting that the firm is completing the final procedures before going public.
The Ministry of Commerce’s business registry indicates that CAMGSM Plc was incorporated on August 20, 1996.
A total of 18 corporate securities currently feature on the CSX – nine stocks and nine bonds. The stock exchange is co-owned by the Ministry of Economy and Finance and the Korea Exchange (KRX) on a 55:45 basis.