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Capital's port on course for IPO

Thu, 17 September 2015  |  Source: The Phnom Penh Post

Cambodia Securities Exchange (CSX) will hold a meeting next week to review the submitted financial statements of Phnom Penh Autonomous Port (PPAP), Cambodia's second-largest port, and to consider its eligibility to list and trade its securities on the stock exchange, a CSX official said yesterday.

Soleil Lamun, acting director of market operations at the exchange, said CSX board members will meet on September 22 to review PPAP's listing documents, which include the company's profile and financial statements.

He said the board is expected to approve PPAP's listing application before referring it to the market regulator.

"CSX will issue the permission in principle, and PPAP will then submit [its documents] to the Securities Exchange Commission of Cambodia [SECC] for final approval," he said.

If approved, PPAP could become the third company to launch an initial public offering (IPO) on Cambodia's fledgling stock exchange.

State utility Phnom Penh Water Supply Authority (PPWSA) listed in 2012 and Taiwanese garment manufacturer Grand Twins International launched an IPO in June last year.

Soleil said the inclusion of PPAP on the bourse would make CSX more attractive to investors.

"Our exchange will have [more listed companies], which is a good point for investors, who will have more alternatives," he said

PPAP has said it will use the funds it raises in a public offering to finance the second stage of development of a new port in Kien Svay, Kandal province.

The state-owned enterprise launched the first stage of the project in 2013, spending more than $28 million provided by the Chinese government.

Kong Channy, secretary to the chairman of PPAP in charge of the company's IPO process, said he is confident that the port operator will receive the green light for a public offering, and expects it to list on the exchange by November.

"We hope that it will go according to plan, but may have to postpone it for a week or two," he said.