Logo of Phnom Penh Post newspaper Phnom Penh Post - Pestech readies for IPO after approval from SECC

Pestech readies for IPO after approval from SECC

Content image - Phnom Penh Post
Motorist ride past the office of Securities and Exchange Commission of Cambodia (SECC). Heng Chivoan

Pestech readies for IPO after approval from SECC

The Securities and Exchange Commission of Cambodia (SECC) approved an application last week to list power infrastructure provider Pestech Cambodia. This will pave the way for the firm to begin its initial public offering (IPO).

Pestech Cambodia, a subsidiary of Malaysia-based Pestech International Bhd, intends to raise more than $20 million through its IPO on the main board of the Cambodia Securities Exchange (CSX).

Last month, the firm obtained approval for its initial eligibility review from the bourse.

Iv Ranarith, the chief executive officer of RHB Indochina Securities Plc, the underwriter for Pestech Cambodia, said on Sunday that approval from the SECC will allow the company to continue the book-building process and register final papers in accordance with applicable laws and regulations.

“The company has passed a very important stage, so the IPO and official listing on the CSX will happen within the year,” he said.

Pestech, he said, will use the IPO’s proceeds to strengthen operations in its existing projects and support the company’s future plans. It also plans to expand operations to Myanmar and Laos under Pestech Cambodia.

Ranarith could not disclose a specific timeline for the book-building or subscription phases, but he said the company would go on a roadshow in the Kingdom and abroad.

“We expect that the newly listed company will boost the trading activity in the market because Pestech is a key player in electric power infrastructure and has a parent company already listed on Malaysia’s exchange,” Ranarith said.

The CSX’s Listing and Disclosure Department director, Lamun Soleil, said it was a good move for the country’s securities market to welcome Pestech. He expected the company to contribute to boosting trading activity.

“After obtaining SECC approval, Pestech and its underwriter can now determine its share price for sale to potential investors,” he said.

Pestech completed its first Cambodian transmission line in June 2013. The company strengthened its presence in the Kingdom with a contract to design, manufacture and install a 198-km line connecting Phnom Penh and Sihanoukville.

Last year, it was awarded a contract to build a $100 million, 230-kilovolt transmission line that connects Koh Kong province’s Stung Tatai hydropower dam to Phnom Penh.

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Hun Sen: Manet to be candidate for prime minister

    Prime Minister Hun Sen has reaffirmed that his oldest son Hun Manet will be his successor as Prime Minister if he is elected. Speaking during the inauguration of a new sewage treatment facility in Preah Sihanouk province on December 2, Hun Sen said Manet will be