Power transmission provider Pestech (Cambodia) Plc on Wednesday became the 13th company to list on the Cambodia Securities Exchange (CSX), following an arduous preparation process marred by the Covid-19 pandemic.
In its initial public offering (IPO) Pestech Cambodia, a 100 per cent owned subsidiary of Malaysia-based Pestech International Bhd, issued 3.9 million shares (5.26 per cent of its total 74,945,000 voting shares) at $0.76 per share, raising approximately $3 million.
Speaking via video conferencing from Malaysia at the listing ceremony, Pestech Cambodia executive chairman Paul Lim said the 1.83-fold oversubscription reflects public confidence in the outlook for the company.
He said the firm has been a participant in the high-voltage electrical-network build-up in the Cambodia since 2010.
Lim said: “With the business-friendly environment in Cambodia and our successful listing on CSX, the group has established a good platform to further pursue vast opportunities in power generation, rail electrification, power distribution and smart grid business in Cambodia and further export to the Mekong region.
“Pestech Cambodia, now being a Cambodian-listed company, is committed to strengthen its corporate presence locally, building a Cambodian based power infrastructure brand name to serve Indo-China, nurturing a team of local power engineering professionals, and to invest in producing locally assembled power products, if granted the opportunities.”
He said that with the company’s efforts will also be focus into bringing in technology for sustainable development of electric power sources in terms of Solar power and waste to energy plant build-up in Cambodia.
CSX CEO Hong Sok Hour said the IPO is the company’s new vehicle for raising capital to further its investments in the Kingdom and expand its business here.
He said: “Fundraising via the capital market will become a priority means for small and medium-sized enterprises [SMEs] to enhance and expand their businesses in the future.
“This method of fundraising will in return provide a reliable option for potential investors who are looking to invest or want to use their surplus money to turn a profit in the short or long term.
“Today’s listing will provide Pestech a new long-term source of funds for their added investment and future business expansions,” he said.
Securities and Exchange Commission of Cambodia director-general Sou Socheat said Pestech had been steadfast on their years-long journey that culminated in Wednesday’s IPO.
He said: “We did not expect Pestech’s IPO to be oversubscribed given how taxing Covid-19 has been.
“Pestech is the first company with a Malaysia-listed parent company and the seventh one to list a stock on CSX. Pestech will surely bring their experiences from listing in Malaysia and put them into practice here.”
CSX CEO Hong Sok Hour said among the 13 securities-listed companies on the CSX, seven are stock-listed and six are bond-listed. As of Wednesday, the 13 have raised around $243 million.
CSX’s market capitalisation rose to $2.57 billion as of June 30, 4.5 times higher than the same date last year, while the index also rose 12 per cent over the same period.
On the Bursa Malaysia, shares of Pestech International were flat at 0.81 ringgit ($0.19) on Wednesday, after having risen to a high of 0.86, for a market capitalisation of 617.781 million ringgit, with 2,628,400 million shares traded.