PPSC sells 14m shares in private placement

Chea Vannak / Khmer Times No Comments Share:
In Cambodia, special economic zones provide businesses various fiscal incentives. Supplied

Phnom Penh Special Economic Zone (PPSP) recently issued more than 14 million shares, bringing its total number of shares to nearly 71.9 million, according to an announcement made by the company during a press conference Friday.

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The new shares were acquired in private placement by two investors – Thailand’s JWD Info Logistic Public Company Limited, who bought just over 7.5 million, and Singapore-based Bok Seng Group, who purchased the rest.

With the issuance, PPSC expands its capital to almost $10 million, with Fong Nee Wai, the company’s chief financial officer, saying the new funds are reserved for projects in the company’s two special economic zones – Phnom Penh Special Economic Zone and Poipet PP Special Economic Zone.

Mr Nee Wai added that the new investors will allow PPSC to expand its operations since both of them are logistics firms.

“The decision to issue new shares reflects positively on the whole market, signaling that investors are confident,” said Sou Socheat, director-general of the Securities and Exchange Commission of Cambodia.

“It shows that companies in the Cambodian stock market can issue shares to the public or in private placements to access more funding,” he added.

In 2016, PPSC became the fourth company to be listed in the Cambodia Securities Exchange (CSX).

Nattapume Pavartn, representative of JWD Info Logistics, said during the press conference Friday that the company decided to buy PPSP shares due to strong demand for logistics services in the Phnom Penh Special Economic Zone.

“Our intention joining PPSC is to share our experience in the Thai logistics sector,” Mr Pavartn said.

It is the first private placement in the local bourse, said Mr Socheat, adding that another CSX-listed company is planning a similar sell-off in the near future, though he did not unveil the firm’s name.

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