Logo of Phnom Penh Post newspaper Phnom Penh Post - Acleda set to issue initial public offering on Monday

Acleda set to issue initial public offering on Monday

Content image - Phnom Penh Post
Acleda, the country’s largest locally-owned commercial bank, completed its book-building process in mid-March. The final offering price was set at 16,200 riel ($4.05) per share. Heng Chivoan

Acleda set to issue initial public offering on Monday

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.

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of

  • School reopening can’t wait

    With the Covid-19 pandemic now well into its second year, safely reopening schools has become an urgent priority. School attendance is critical for children’s education and lifetime prospects. The long-term costs of closures – both for individual children and society – are simply too large to