Pestech readies for IPO after approval from SECC
THE Securities and Exchange Commission of Cambodia (SECC) approved an application last week to list power infrastructure provider Pestech Cambodia. This will pave the way for the firm to begin its initial public offering (IPO).
Pestech Cambodia, a subsidiary of Malaysia-based Pestech International Bhd, intends to raise more than $20 million through its IPO on the main board of the Cambodia Securities Exchange (CSX).
Last month, the firm obtained approval for its initial eligibility review from the bourse.
Iv Ranarith, the chief executive officer of RHB Indochina Securities Plc, the underwriter for Pestech Cambodia, said on Sunday that approval from the SECC will allow the company to continue the book-building process and register final papers in accordance with applicable laws and regulations.
“The company has passed a very important stage, so the IPO and official listing on the CSX will happen within the year,” he said.
Pestech, he said, will use the IPO’s proceeds to strengthen operations in its existing projects and support the company’s future plans. It also plans to expand operations to Myanmar and Laos under Pestech Cambodia.
Ranarith could not disclose a specific timeline for the book-building or subscription phases, but he said the company would go on a roadshow in the Kingdom and abroad.
“We expect that the newly listed company will boost the trading activity in the market because Pestech is a key player in electric power infrastructure and has a parent company already listed on Malaysia’s exchange,” Ranarith said.
The CSX’s Listing and Disclosure Department director, Lamun Soleil, said it was a good move for the country’s securities market to welcome Pestech. He expected the company to contribute to boosting trading activity.
“After obtaining SECC approval, Pestech and its underwriter can now determine its share price for sale to potential investors,” he said.
Pestech completed its first Cambodian transmission line in June 2013. The company strengthened its presence in the Kingdom with a contract to design, manufacture and install a 198-km line connecting Phnom Penh and Sihanoukville.
Last year, it was awarded a contract to build a $100 million, 230-kilovolt transmission line that connects Koh Kong province’s Stung Tatai hydropower dam to Phnom Penh.