Logo of Phnom Penh Post newspaper Phnom Penh Post - Malaysian firm to list on Cambodian stock market

Malaysian firm to list on Cambodian stock market

A monitor displays stock information next to the reception of the Cambodia Securities Exchange last year.
A monitor displays stock information next to the reception of the Cambodia Securities Exchange last year. Heng Chivoan

Malaysian firm to list on Cambodian stock market

Cambodia’s fledgling stock exchange could receive a much-needed boost after Malaysian-owned power infrastructure provider Pestech Cambodia officially submitted its application for an initial public offering on the CSX, industry insiders said yesterday.

Lamun Soleil, director of market operations at exchange, said Pestech Cambodia’s application was now being reviewed, and its listing was expected in the third quarter of 2018.

“This is a good sign, and shows that [Pestech] has confidence in our market,” Soleil said, adding that he was optimistic that trading activity on the CSX would gain momentum in the upcoming year. “Once there are more companies listed on the exchange, there will be more products for investors to trade, which help the market become more active.”

According to a filing on the Malaysian stock exchange, Pestech hopes to raise as much as $20.3 million through its initial public offering (IPO) on the CSX with an indicative price of $0.70 for 29 million shares, representing up to 29 percent of the company’s value. Eight million of those shares are to be made available to the public, with the rest earmarked for select investors as well as directors, employees and business associates, the filing says. Pestech’s application was submitted to the Securities and Exchange Commission of Cambodia on December 22, it says.

David Van, executive director of Deewee Management, said the Pestech listing could help “reinvigorate the struggling CSX”, not only encouraging growth in the Kingdom’s electricity sector but also contributing to the strengthening of Cambodia’s institutional framework.

“Considering [Pestech Cambodia’s] parent company is already listed in Malaysia, we should expect it to operate within ethical norms and with good governance,” he said.

Stephen Higgins, managing partner of Phnom Penh-based investment firm Mekong Strategic Partners, agreed that more listings on the CSX would help lift the market’s liquidity, “which is a major problem at the moment”.

“It’s not clear to me however that the underlying business model of Pestech is as attractive as other stocks like the ports,” Higgins added.

Pestech says in its filing that it is currently operating with a negative working capital, and intends to use the IPO to finance its extensive projects in the Kingdom.

Earlier last week, the company announced that it had won a $26 million job to begin construction on three new electricity projects in Cambodia, including a new substation in Phnom Penh as well as two substations and a 115kV transmission line in Oddar Meanchey.

Additional Reporting by Robin Spiess

MOST VIEWED

  • Archaeologists find ancient remnant

    A team from the Apsara National Authority (ANA) has discovered a gatekeeper statue’s foot fragment at the Tonle Snguot Temple, within a metre of the toe of a statue found in 2017. ANA spokesman Long Kosal told The Post on Wednesday that the fragment was

  • Hun Sen to the rescue

    Cambodia has won praise for allowing passengers of the MS Westerdam cruise ship to dock at Preah Sihanouk port, thanks to Prime Minister Hun Sen’s humanitarian act. In a message via Twitter on Wednesday, the director-general of the World Health Organisation Tedros Adhanom Ghebreyesu

  • EU partially withdraws EBA

    The EU Commission on Wednesday announced the partial withdrawal of the Everything But Arms (EBA) scheme, citing a serious and systematic violation by Cambodia of principles in the four core human and labour rights. The suspension affects one-fifth or €1 billion ($1.08 billion) of Cambodia’s annual

  • Japan calls for policy changes

    Representatives of Japanese companies and investors on Wednesday submitted a list of policy recommendations to the government concerning 21 challenges to the Kingdom’s business climate. Japanese Ambassador to Cambodia Masahiro Mikami and leaders of the Japanese Business Association in Cambodia (JBAC), Japan International Cooperation Agency

  • Still no word about EBA but rice likely unaffected

    Officials on Monday said the government had not received an official statement regarding the EU’s potential withdrawal of Cambodia’s Everything But Arms (EBA) scheme. The EU launched the EBA withdrawal procedure on February 12, citing “a deterioration of democracy [and] respect for human rights”

  • Hate worse than virus, PM says

    Prime Minister Hun Sen on Tuesday criticised countries that have cancelled flights with China following the outbreak of the Novel Coronavirus (2019-nCoV), arguing that such moves amounted to discrimination against the Chinese. In a speech delivered during the groundbreaking ceremony for work on national roads 2