Logo of Phnom Penh Post newspaper Phnom Penh Post - PPAP seeks to generate $6.4M in IPO

PPAP seeks to generate $6.4M in IPO

PPAP seeks to generate $6.4M in IPO

The state enterprise that operates Cambodia’s second-largest port is looking to raise up to $6.4 million in its initial public offering (IPO) and float 20 per cent of its shares on the stock market in December, according to a company draft prospectus released yesterday.

Phnom Penh Autonomous Port (PPAP) will issue a total of 4.1 million shares at a price to be fixed following a three-day book-building session scheduled to begin on October 19. Some 1.7 million shares, about 40 per cent of the issue, will be offered to institutional investors participating in the book build.

Yuanta Securities, the underwriter for the IPO, has set the price band from 4,405 riel to 6,320 riel (approximately $1.08 to $1.55) per share. With that, PPAP expects the proceeds from the share offering to be between $4.4 million and $6.4 million, before deducting listing and accounting expenses.

Upon completion of the book building, PPAP and its underwriter will set the price at which shares will be sold to investors, and determine the allocation. The subscription period will run from November 12 to 17 ahead of the listing on the Cambodia Securities Exchange (CSX), scheduled for December 11, according to the prospectus.

Stephen Higgins, managing partner of investment firm Mekong Strategic Partners, said PPAP’s short book-build period should not have any significant impact on the share’s valuation.

“The short book-build period should be sufficient to determine the IPO price, and seems a sensible way of going about it,” he said. “Yuanta and other brokers have already been out marketing the IPO, so increasing the book-build period wouldn’t necessarily result in many more investors coming in.”

He said the stock should also appeal to retail investors, as it is supported by the PPAP’s revenue potential and significant land holdings. Moreover, the company is sweetening its IPO by offering investors a government-guaranteed 5 per cent dividend yield on the initial share price.

The share issue will represent a free float of 20 per cent of PPAP’s total issued shares, with 10 per cent of this float reserved for the company’s employee stock ownership plan.

MOST VIEWED

  • Serious flooding across country

    The Kampong Speu provincial Committee for Disaster Management on Wednesday issued an alert after non-stop heavy rain caused widespread flooding. In Koh Kong province, authorities are working with the disaster committee and the Cambodian Red Cross to assist those affected after more than 350 homes were

  • CNRP points to King in call for vote boycott

    Leaders of the former Cambodia National Rescue Party (CNRP) have taken a new tack in their call for a boycott of the national elections later this month. They are now claiming that the people should follow the King, who is expected to abide by tradition

  • Actress’s NGO takes heat for promoting the ruling party

    An actress’s NGO which participated in an election campaign event contrary to the Law on Association and Non-Governmental Organisations (Lango) has been slammed. Chorn Chanleakena, a celebrity and the president of the Association of Artists Volunteering to Help Society, allegedly led its members in

  • Troop moves ‘won’t worry people’

    Senior officials at the Ministry of Defence and National Police said on Tuesday that riot training provided to the country’s police forces were aimed at preventing unexpected demonstrations and strikes before and after the July 29 national elections. The troop mobilisation, they said, would not