The majority Chinese-owned Sihanoukville Special Economic Zone Co Ltd (SSEZ) announced yesterday that it is going for public listing to raise more funds through the capital market, according to the statement from Cambodia Securities Exchange (CSX).
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Sihanoukville SSEZ is now standardizing the company’s development, working on the construction of a Sihanoukville Special Economic Zone 2.0 and strives to be listed on the Cambodia Securities Exchange.
The announcement was made during the 2018 annual shareholders meeting held recently.
“This marked the official goal of the SSEZ to be a listed company and it has begun to prepare for the listing,” the CSX statement said. “The purpose of SSEZ to go public is to raise more funds through the capital market, promote high quality development of the zone and make greater contributions to the development of Cambodia’s industrial economy.”
In addition, through listing, all Cambodian shareholders can share the achievements of the zone and achieve a win-win situation, it added.
The SSEZ had planned to raise funds for zone development by launching an initial public offering (IPO) in Cambodia or Hong Kong but had decided to list on the Cambodia Security Exchange (CSX) first, its president Jack Chen told Khmer Times’ weekly business publication Capital Cambodia in March.
Established in 2007, SSEZ is a partnership between Jiangsu Taihu Cambodia International Economic Cooperation Investment Co., Ltd. and Cambodia International Investment Development Group Co., Ltd.
Its close proximity to the Sihanoukville Autonomous Port and International Airport makes it a viable industrial area for investors, made sweeter by lower land prices than Sihanoukville Economic Zone (SEZ) along the coast.
SSEZ sprawls 11.13 square kilometers, about 12km from the Sihanoukville coast, and only three kilometers from Sihanoukville International Airport.
It hosts 161 companies with a total sales revenue over $1 billion, and 29,000 workers have been employed since the ground breaking ceremony in February 2008.
“SSEZ is an iconic project for the Belt and Road Initiative (BRI) that is aimed at creating an investment platform for enterprises,” Mr Chen said. “We believe we are the driver of the economy in Cambodia with over 160 companies here.”
“Of the 29,000 workers, more than ninety percent are locals and there are some 1,000 foreign workers,” he added.
The SSEZ 2.0 is a fully functional ecological model park. After it is completed some 300 enterprises will settle there, employing between 80,000 and 100,000 workers.