ACLEDA Bank Plc, the largest national commercial bank, plans to conduct roadshows for its initial public offering (IPO) next month in anticipation of getting approval for the move from the Securities and Exchange Commission of Cambodia (SECC) by the end of this month.
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Speaking at a seminar on the bank’s upcoming share offering to Korean investors on Wednesday, In Channy, its president and group managing director, said it was confident the IPO will be ratified by Feb 25.
SECC director general Sou Socheat, told Khmer Times the commission will have a meeting on the subject on that day.
In, however, said that if the SECC approves the IPO on Feb 25, the bank will conduct its official roadshows on March 3 and 10. He said they will detail all information regarding the IPO.
In added the bank has already conducted four seminars on the IPO focusing mainly on individual investors and mainly Cambodian people because he wants more Cambodians to be aware of the event and become shareholders.
In added that a fifth seminar will target Korean investors in the Korea Association of Finance Companies (KAFC).
More than 50 Korean investors in the KAFC showed an interest, In said.
He added the security market will not target a specific group and the IPO is open to other foreign investors. Also, shares can be bought and sold after the IPO.
“The year 2020 will mark a new chapter of ACLEDA Bank’s success story by making it the first public bank in Cambodia with its shares listed on the Cambodia Securities Exchange [CSX],” In said.
Andrew Shin, chairman of the KAFC, said at the seminar on Wednesday that it had invited two groups of investors from Korean financial institutions in Cambodia as well as Korean residents and individual investors from Korea.
“In Korea, the capital market; especially, the equity capital market, is booming and investors have been very active, so they have good experience in making equity investments, so I want to share this good investment opportunity with the Korean community and Korean financial institutions,” Shin said.
He said that it is common in Korea that financial institutions diversify their portfolios across different assets including bonds and shares so the ACLEDA IPO should attract their attention and promote Cambodia’s securities exchange.
“This is the first IPO for the commercial sector in Cambodia so ACLEDA is acting as a role model for all commercial banks to list afterwards. ACLEDA has lots of potential to grow and consistently generates a lot of revenue every year. I am sure that there will be a lot of interest in investing in it,” he said.
Shin added investors can’t wait for the official listing date, particularly now that ACLEDA has announced it will allow individuals to become shareholders. It’s a boost for the Cambodian economy, he stressed.
Ha Jong Weon, chief operating officer of CSX, said the proposed seminar is to assist a highly potential investment opportunity to Korean investors residing in Cambodia.
“Korean investors are really keen to invest in the Cambodian banking sector, which is considered to be one of the most profitable and growing sectors in Cambodia,” Ha said.
He added that there have been many purchases of local banks by big Korean institutional investors so far, but individual Korean investors have never had a chance to participate. “There are a lot of Korean investors living in Cambodia asking about ACLEDA’s IPO. So, I believe that this seminar will provide detail information for them to get ready to buy shares in this largest domestic bank,” he said.