Two regional companies have invested nearly $10 million to acquire 14 million shares in the Phnom Penh Special Economic Zone Plc (PPSEZ) – one of five companies listed on the Cambodia Securities Exchange (CSX) – in what is considered the first ever private offering by a listed firm in the Kingdom.
JWD Infologistics Plc, a logistics company from Thailand, and Bok Seng Group, a Singaporean company that provides a comprehensive range of logistics services, unveiled their placements at a press conference on Friday.
JWD acquired more than 7.5 million of the 14 million shares, while Bok Sheng Group took up the remaining at 70.37 cents per share, bringing PPSEZ a combined $9.85 million in placement. The acquisition pushes the total listed shares of PPSEZ to nearly 72 million.
Bok Seng Group founder and chairman Henry Ng Lian Soon who also has commercial operations in Malaysia, Indonesia, Brunei, Thailand, Myanmar, Vietnam and Laos, said he is keen to capitalise on the Chinese government’s Belt and Road initiative by linking his Cambodian investment with other countries where his company has a presence.
“I think through this Belt and Road initiative , we can trade across the borders. Because we are in logistics, we need the network. We need a local [company] to support [companies in other countries]”, said Ng.
JWD, which initially bought a 5.2 per cent stake in PPSEZ in 2016, aims to become a leading regional logistic service provider whose operations network covers both emerging and mature markets.
JWD representative Nattapume Pavaratn said the firm sees great potential in PPSEZ and that its additional placement will provide the economic zone with strategic assistance and expertise.
“We can bring at least know-how to PPSEZ in the future,” he said.
PPSEZ became the fourth listed company on CSX in May 2016. The firm has said it will use the proceeds to support business expansion, new business development opportunities and for general corporate purposes.