Logo of Phnom Penh Post newspaper Phnom Penh Post - Momentum building for GTI

Momentum building for GTI

Workers at Grand Twins International garment factory stitch material into garments in Phnom Penh’s Por Sen Chey district in January
Workers at Grand Twins International garment factory stitch material into garments in Phnom Penh’s Por Sen Chey district in January. Vireak Mai

Momentum building for GTI

The next stage of Grand Twins International’s (GTI) listing on the Cambodia Stock Exchange – public subscriptions – has had a positive response, according to the head of one of the country’s brokerage firms.

Svay Hay, CEO of Acleda Securities, a registered broker for GTI, said the subscription process had attracted interest from Taiwanese and Chinese investors over the past five days.

“We expect it to be over-subscribed, both with unsuccessful book-building applicants and new applicants,” he said.

GTI will be the second company to go public on the CSX since it commenced trading in 2012 with the Phnom Penh Water Supply Authority’s initial public offering.

Despite the long-awaited arrival, however, Hay said developing an active, day-trading culture in Cambodia would depend mainly on the companies’ transparency and communication with investors.

“At this stage we can only think they are long-term investors. Short term [and day trading] will really depend on how much and how often the company releases information,” he said.

Stephen Hsu, CEO of Phnom Penh Securities (PPS), GTI’s underwriter told the Post that apart from awaiting payment from foreign investors, the open-to-the-public share sell process was “so far, so good”, without revealing further details about the progress.

Public subscriptions for the GTI IPO are restricted to a minimum purchase of no less than 100 shares at $2.41 per share. The subscriptions process will end May 9, close to three weeks ahead of the May 29 official listing.

The public subscriptions offering comes after the initial book-building process, which targeted large-scale individual and institutional investors, was finalised on April 24 and helped set the final share price.

According to underwriter PPS’ official book building results, more than 2.7 million of the eight-million-share offering were successfully snapped up by big investors.

Cambodian investor interest in GTI’s IPO was dwarfed by off-shore interest with 92 foreigners now holding more than 2.1 million shares in the Taiwanese-owned garment manufacturer.

Just 13 local applicants successfully managed to acquire 233,000 shares in GTI.

Hsu refrained from identifying the largest share holders but did say they were primarily from Taiwan, China and Japan.

“Institutional investors, especially private equity funds, are very interested in the company’s return, which is quite a bit higher than investing in other companies or bank deposits,” he added, citing GTI’s price-to-earnings ratio (P/E) – the amount investors are willing pay per share given the company’s profits.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the