Logo of Phnom Penh Post newspaper Phnom Penh Post - Garment makers gear up for IPOs

Garment makers gear up for IPOs

Garment makers gear up for IPOs

Two foreign-owned garment manufacturers will submit disclosure documents to Cambodia’s capital market regulator next month, the companies’ underwriter Phnom Penh Securities Firm Plc. said yesterday.

The initial public offerings for the two private companies, expected by the end of the year, should boost action on the Cambodia Securities Exchange.

The CSX’s only listed company, Phnom Penh Water Supply Authority, closed just above its IPO price yesterday. The solitary stock would continue to decline without accompanying firms, experts said.

Submission preparation for QMI International and TY Fashion, both Taiwanese companies, was “99 per cent complete”, Phnom Penh Securities chief executive Stephen Hsu said.

“All the financial reports are finished. We will be ready to submit the disclosure documents to the [Securities and Exchange Commission of Cambodia] next month,” he said by phone.

Listing dates for the remaining state-owned firms were unclear yesterday.

Telecom Cambodia has not designated a specific date, but insiders said the firm is expected to list in January.

Sihanoukville Autonomous Port
earlier this year announced a July listing date, but officials yesterday said the deadline was unrealistic.

“So far, we have tried our best to push the IPO forward as quickly as possible. All stakeholders have worked for this. But I think there is not enough time to list by next month,” Sam Sopheap, a member of the company’s IPO team, said yesterday. He declined to speculate on a date.

PPWSA would stagnate without more companies on the CSX, Hsu said. New IPOs, especially from private companies, would attract the attention of investors, he said. “One company is not interesting. If we don’t have more companies listing, the situation will continue like this,” he said.

Since late April, the price of PPWSA has gradually fallen toward its IPO price of US$1.53. The company closed at $1.55 yesterday.

Insiders have cited several reasons for the drop, among them originally overpriced shares, as well as a lack of long-term investors.

In November, Phnom Penh Securities said it would underwrite the IPOs for five companies this year.

While QMI and TY Fashion have seen quick progress, other companies such as garment manufacturer Grand International Ltd and logistics firm Olair Dry Port Worldwide Co Ltd had been slower to organise.

“It’s still the same problem. For some companies, it’s taking longer for them to get into order,” Hsu said.

To contact the reporter on this story: Don Weinland at [email protected]

MOST VIEWED

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Angkor Wat named as the top landmark for the second year

    Travel website TripAdvisor has named Cambodia’s ancient wonder Angkor Wat as the top landmark in the world for the second year running in their Travelers’ Choice Award 2018, an achievement Cambodian tourism operators expect will attract more tourists to the Kingdom. The website uses traveller

  • Ministry’s plan for net sparks fears

    The government has ordered all domestic and international internet traffic in the Kingdom to pass through a Data Management Centre (DMC) that has been newly created by the state-owned Telecom Cambodia, in a move some have claimed is an attempt to censor government critics. Spokesman

  • Hun Sen detractors ‘will die’

    Prime Minister Hun Sen on Wednesday said those who curse or insult him would eventually die without a plot of land to bury their bodies after being killed by lightning, suffering the same fate as those who recently died in Thmar Baing district in Koh