Grand Twins International (Cambodia) Co. Ltd., a manufacturer of clothes for U.S. athletic brands, announced Thursday that it would officially list on the Cambodia Securities Exchange (CSX) after the Khmer New Year, making it the first private trading share on the bourse and the second company to do so.
When it lists on May 8, the company plans to offer 8,000,000 shares for the initial public offering (IPO), with a share price ranging from 7,400 riel, or about $1.85, to 14,000 riel, or about $3.50, according to Grand Twins executives who Thursday outlined the plan during an elaborate ceremony at the Sofitel hotel.
“Grand Twins is the first private company to go public in Cambodia. I’m confident that, with your support to our IPO, Grand Twins will not only utilize our investment to be bigger and stronger but also improve internal management and law enforcement to make a profit for all investors,” Liao Chung Te, CEO of Grand Twins, told a crowd of more than 200 local businessmen and women.
The only current listing on the CSX is the state-run Phnom Penh Water Supply Authority, which began trading when the stock exchange opened in April 2012.
According to a report presented Thursday by Grand Twins, the company expects its revenue to increase 12.5 percent to $40 million in 2015, up from $30 million that the company estimates it will obtain this year. The report also showed Grand Twins’ net profit reached $8.7 million in 2012, with its earnings amounting to $25 million.
But, before Grand Twins can list, it must first go through a book building process, where it will begin recording investor demands to determine the price for an IPO.
A news statement on the Phnom Penh Securities website states Grand Twins will start this process Monday and end it on March 28, with the results announced April 3.
Another book building session is scheduled from April 21 to April 25.
Grand Twins manufactures clothing for U.S. athletic brands Adidas and Reebok.
CSX CEO Hong Sok Hour told reporters at the ceremony Thursday that there are more companies who plan to list on the CSX after Grand Twins, but declined to name them or say if they were from the private sector or state owned.
“There are two or three companies that are working hard to prepare the documents [to list], but I don’t know which one or two of them are ready,” he said.
The CSX’s website gives a timeline of at least one year from filing with the Securities and Exchange Commission of Cambodia to listing.
In the past year, except for Grand Twins, mostly state-owned organizations, including Sihanoukville Autonomous Port and Telecom Cambodia, have expressed interest in listing on the CSX.