ACLEDA Bank Plc (Acleda) will become the first commercial bank to issue an initial public offering (IPO) on the Cambodia Securities Exchange (CSX) on May 25.
Acleda, the country’s largest locally-owned commercial bank, completed its book-building process, which determines the price of the initial stock by generating and analysing investor demand, in mid-March.
The final offering price was set at 16,200 riel ($4.05) per share.
Some 2,497 investors subscribed to the bank’s shares, 95.6 per cent of whom were local investors with the remaining investments coming from foreigners.
Acleda president and group managing director In Channy said the new public shareholders of the bank will be able to enjoy the benefits of the bank’s growth through dividends and capital gains.
“We are delighted to announce that Acleda will be listed on the CSX on Monday, May 25. Through Acleda’s IPO, individual and institutional investors now have the opportunity to invest in a listed commercial bank for the first time in the Kingdom.
“Acleda’s IPO attracted many Cambodian retail investors to the CSX for the first time and will continue to contribute to the development of the Cambodian capital market,” he said.
Yuanta Securities (Cambodia) Plc managing director Han Kyung-tae said that with Acleda’s shares listed on the CSX, the total market capitalisation of the CSX will be tripled.
“We are honoured and pleased to have been part of this monumental project as the sole financial adviser and to contribute to the development of the Cambodia securities market.
“We believe that Acleda took a very important first step towards becoming a true people’s bank through the IPO.”
“Yuanta, as the lead manager [underwriter] of this significant project, will continue to help the issuer and public investors by focusing on enhancing the liquidity of the bank’s shares in the secondary market,” said Han.
He said Yuanta will assist the bank with follow-on offerings and block trades in the future to attract more foreign investors to Cambodia’s still-young stock market.
Acleda started as an NGO in 1993 with a $600,000 capital investment.
Since its founding, the bank’s capital has increased 700-fold, with total assets expanding 9,000-fold to about $6 billion, and net profit rising nearly 2,000-fold, said Channy.