Logo of Phnom Penh Post newspaper Phnom Penh Post - Prasac to list on bourse

Prasac to list on bourse

Content image - Phnom Penh Post
Prasac will issue 1,272,000 shares for the public offering with a total issue amount of 127.2 billion riel ($31.8 million). HONG MENEA

Prasac to list on bourse

Prasac Microfinance Institution Ltd (Prasac) successfully raised $31.8 million from a corporate bond subscription, a move to list on the nascent Cambodia Securities Exchange (CSX) on May 5.

It is set to become the second financial institution to list on the bourse during the spread of the Covid-19 pandemic after South Korea-owned Phnom Penh Commercial Bank Plc (PPCBank) listed last week.

Prasac will issue 1,272,000 shares for the public offering with a total issue amount of 127.2 billion riel ($31.8 million). The bond is fully guaranteed by a trust fund from the Asian Development Bank and the Credit Guarantee and Investment Facility (CGIF)
The coupon rate with cooperate bonds is 7.5 per cent per annum with a three-year maturity (semi-annual payment).

Seng Chan Thoeun, managing director for SBI Royal Securities Plc, an underwriter for Prasac, told The Post that compared to previously listed firms that his company has worked with – Hattha Kaksekar Ltd (HKL) and Sihanoukville Autonomous Port (PAS) – Prasac raised the most capital from the stock market.

He said Prasac raised $31.8 million while HKL raised $30 million and PAS raised $27 million. “It is good for Prasac to secure more liquidity during this situation. It is also good that Prasac got KB [Kookmin] Bank as a new major shareholder, which is a prominent player in South Korea.

“At the same time, we have introduced the profile of Prasac to many institutional investors in many countries, and that means it has built more qualified investors for future tenders.

“It is a good thing that the capital market and bond market provides . . . a steady stream of investors to provide funds for future listings,” said Chan Thoeun.

CSX vice-chairman and chief operating officer Ha Jong-weon said Prasac is currently working with CSX on filing an official listing application. The tentative listing date is on May 5, making Prasac the sixth bond-listed company on the CSX.

“Thus, CSX will have product diversification and investors will have better investment choices. Fund raising through capital market is the best choice during this difficult situation due to the fact that it is the long-term source of funding and especially for initial public offerings.

“The listed company does not need to pay periodic interest payments or principal back to the investors. Furthermore, the company may decide not to distribute dividends depending on the actual company situation,” said Ha.

MOST VIEWED

  • First Khmer woman to pass out of West Point

    The life of a soldier certainly isn’t for everyone. The training is gruelling, the hours long and there’s no room for excuses. On top of that, soldiers must be ready to respond to sudden threats at a moment’s notice. Just ask Sithyka

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • Deminers unearth ancient lion statue

    Cambodia Mine Action Centre (CMAC) director-general Heng Ratana told The Post on Tuesday that a statue of a lion was found by mine clearance experts while they were digging for a development project. It was sent to the Ministry of Culture and Fine Arts last