Shares in Sihanoukville Autonomous Port (PAS), the state-owned enterprise that operates Cambodia’s solely sea port, debuted on Cambodia’s exchange yesterday when associated initial public providing that raised $27 million.
The port operator became the fifth listed firm on the Cambodian Securities Exchange (CSX), with its stock commerce as PAS. In total, it offered investors $21.4 million, or a twenty-five % stake in the company, with shares priced at five,040 Cambodian monetary unit ($1.26).
Trading opened at five,360 Cambodian monetary unit ($1.34) per share, up over 6.3 % from the stock’s providing value, however by the tip of the morning’s session had slipped to five,100 Cambodian monetary unit ($1.28). a complete of thirteen,798 shares modified hands, amounting to $18,298.
By comparison, Cambodian capital Autonomous Port (PPAP), that in Dec 2015 became the third company to list on the exchange, saw the same level of commerce on its gap day, with 13,050 shares listed price regarding $17,000.
Lamun Soleil, director of market operations at the CSX, same the gap value of PAS mirrored robust underlying demand for the stock.
“The gap value was five,360 riels, that may be a 320 Cambodian monetary unit increase [on the providing price],” he said. “It may be a higher increase compared to the previous listings, with the exception of PWSA, the primary certificate on the CSX.”
Seng Chan Thoeun, head of finance at SBI Royal Securities, the stock’s underwriter, same the distinction between the providing value and gap value was the results of providing and demand.
“The value of 5360 Cambodian monetary unit [was the result of] the demand from investors,” he said.
According to CSX officers, the providing value was firm by a book-building exercise in late Apr that gauged capitalist interest within the initial public providing (IPO). native and Asian institutional investors snapped up shares throughout the bookbuild, that was a pair of.4 times sold, whereas the Japan International Cooperation Agency singly purchased eleven.57 million shares, or fifty-four %, of the overall offered shares.
Investors unable to accumulate PAS shares throughout the bookbuild or the absolutely signed retail subscription last month were ready to place orders to get shares on its gap day of Commerce. This excess demand, CSX officers same, helped push up the stock’s gap value.
A higher gap value is usually a decent sign that demand for a stock is robust and therefore the stock can still rise. Most native stocks, however, have swayback below the difficulty value among days of listing on the CSX.
Yet investors that The Post spoke to yesterday same they weren't essentially seeking a stock, however, rather an investment to grasp dividend gains.
PAS has offered investors a secure five % dividend yield on the initial share value for ensuing 3 years.
“The five % [guaranteed] dividend can let American state hold the stock for the future,” same a retail capitalist World Health Organization declined to be named. “I assume the performance [of the commerce] is sweet as a result of the [current] value continues to be above the IPO value, and there are some investors World Health Organization ar still [making] orders.”
Soleil same SBI Royal has not confirmed whether or not it'll act a liquidity supplier for PAS stock, a task which will offer value stability and improve liquidity by creating it easier for traders to shop for and sell shares.
“We tried speech SBI Royal before the listing, however, it's not [finalized] Nevertheless,” he said. “I assume that SBI Royal believes that the stock value won't decrease so that they don't wish to be a liquidity supplier. If the value tends to decrease, they will decide otherwise.”
Eiichiro thus, chairman of SBI Royal, same the firm’s call to become a liquidity supplier would depend upon the stock’s performance.
“I assume it depends on the market,” he said. “We cannot say a target date on after we can become a liquidity supplier.”
PAS Chairman and business executive Lou Kim Chhun same that the corporate can use the yield of the $27 million commerce to get new land and instrumentation to expand its port activities in Sihanoukville.