Logo of Phnom Penh Post newspaper Phnom Penh Post - Sihanoukville port announces bookbuild and IPO date

Sihanoukville port announces bookbuild and IPO date

Content image - Phnom Penh Post
An aerial view of the Sihanoukville Autonomous Port in Preah Sihanouk province Heng Chivoan

Sihanoukville port announces bookbuild and IPO date

The state-owned enterprise that operates Cambodia’s only deep-sea port officially announced that it will launch its six-day bookbuild and public roadshow starting next Tuesday with an expected initial public offering (IPO) on the Kingdom’s stock market set for May 31, the company’s sole underwriter said yesterday.

Sihanoukville Autonomous Port (SAP) will float a total of 21.44 million shares, or 25 percent of the company, in hopes to raise $27 million to expand and improve on existing facilities. It will be the fifth company to list on the Cambodia Securities Exchange (CSX) in the last five years and would be the largest IPO to date.

The bookbuild, a tool used by underwriters to record demand from institutional investors, is expected to set a price band from $0.88 to $1.29 per share.

Seng Chan Thoeun, head of corporate finance at SBI Royal Securities, the port’s sole underwriter, said that proceeds from the IPO will be used to purchase an additional 52 hectares of land to construct a new dry port, while also expanding its container yard and purchasing new heavy machinery.

He added that the firm has already presented the port to institutional investors abroad in places like Hong Kong, Thailand and Japan and expects the bookbuild to fully subscribe the 21.44 million shares.

“[The port] is the best company to list on the stock exchange to date because it is the only deep-sea port in Cambodia and can connect to other ports both regionally and globally,” he said. “We forecast that container traffic at the port will increase significantly in the future and that is why the port needs to increase productivity and expand.”

According to an announcement by SAP yesterday, the company has allocated 54 percent of the bookbuild shares to the Japan International Cooperation Agency, or JICA, with another 25.2 percent up for grabs by regular investors with 10.8 percent set aside for subscription. The remaining 10 percent will go towards an employee stock ownership program.

The port operator first announced its intention to list on the CSX in 2012 but has faced a number of setbacks, including listings compliance and tax issues.

Lamun Soleil, director of the CSX’s market operation department, said that it was good news that SAP has cemented its bookbuild dates and it showed that the state-run company has cleared its lingering compliance hurdles. He believed that its addition to the sleepy bourse could revive trading activity.

“SAP is a state-owned enterprise that is directly connected to the strong growth of Cambodia’s economy,” he said. “The more the Cambodian economy grows, the more imports and exports will increase [causing] SAP’s business activities go up.”

MOST VIEWED

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants