Is Cambodia Airways Going To List On The NASDAQ?

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Is Cambodia Airways Going To List On The NASDAQ?

Post by rogerrabbit »

Is Cambodia Airways Going To List On The NASDAQ?

Cambodia Airways has filed and set terms on 30th May 2024 with the SEC (Securities Exchange Commission) for its intentions to list on the US NASDAQ and is seeking to raise several million US Dollars in an initial public offering (IPO).

The airline is a Cambodia-based company and the SEC filing by Cambodia Airways indicates it is offering 1.5 million Class A ordinary shares under the symbol CAKR at a price range of USD $4-5 which would generate net proceeds of about USD $4.6 million from IPO. One report suggests the airline will use the proceeds for aircraft leasing, new air routes development and working capital purposes.
https://b2b-cambodia.com/news/is-cambod ... he-nasdaq/

Extra nuggets of information from filing documents:
To reduce costs and operational challenges, we plan to acquire new long-range narrow-body aircraft like the A320neo and A321LR (“long range”) to enable us to offer direct flights of up to 8-10 hours. Between 2026 and 2029, we plan to introduce two new passenger aircrafts each year to expand our direct flight routes to the Middle East, North Asia and Australia.

We also plan to introduce wide-body aircrafts for business routes with lie-flat cabins, which we believe will enhance the airline’s brand and market presence while offering improved in-flight experiences for our passengers.

We plan to expand and integrate cargo services by incorporating dedicated freighter aircraft while partially utilizing our commercial flight aircraft space for freight needs. Additionally, we plan to focus revenue sources from our commercial flights such as in-flight catering and exclusive airport lounge.
You can find their official SEC filings on SEC website if you want take a look at their finances and other stuff
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by armchairlawyer »

https://www.kiripost.com/stories/csx-sl ... -on-nasdaq

Home-grown Cambodia Airways Co Ltd is looking to list 1.5 million initial public offering (IPO) shares, priced between $4 and $5 apiece, to raise up to $7 million on New York-based Nasdaq index, according to the US Exchange and Securities Commission on May 30.

Assuming it secures a minimum proceeds of $4.6 million based on the lower IPO price range of $4, the airline plans to use 50 percent for aircraft leasing, 30 percent for new air route development and the rest for working capital.

The date for the IPO launch, with a CAKC stock ticker when listed, has yet to be confirmed. It is currently awaiting the commission’s conditional approval letter.

US-based Univest Securities LLC is acting as its underwriter.

Donovan Jones, an American research specialist on IPOs, made a pre-listing call on the company advising investors to “sell” (avoid) Cambodia Airways stock on the back of “operating risks, poor financial results and excessive valuation expectations”.

‘Handsome tax benefits’
Back home, Cambodia Securities Exchange (CSX) market operations director Kim Sophanita said there was no discussion or listing application by Cambodia Airways.

“I think they wish to list on Nasdaq due to its market size and reputable status. We are happy to see a Cambodian company qualified for international listing,” Sophanita told Kiripost.

However, she expressed a “slight disappointment” that the airline did not explore local fundraising opportunities, which could enable them to not only access funding but “handsome tax benefits”.

It would have also presented an opportunity to promote wealth-sharing and pay-back culture to Cambodian people by allowing them as “prospective clients and indigenous people”, to invest in the country’s aviation industry and grow together.

“This would [have] brought about long-term local investor base expansion,” she said, while encouraging companies with operations based in Cambodia to initiate IPOs in Cambodia before considering a secondary IPO in the international market.

Consecutive losses since pandemic
The Phnom Penh-based full service airline, has six aircrafts featuring Airbus’ A319 and A320 series. Average age of its A319s and Airbus A320s was 15 years and five years, respectively. However, the company is in the process of selling one of its A319 as the “condition is no longer suitable for the current market demand”.

Established in 2017, Cambodia Airways was founded by 43-year-old Singaporean Ng Kong Hwa, who was made chairman this January, with Wang Yun-Te, 62, a pilot, who was appointed CEO.

A unit of the Cambodian conglomerate Prince Group, the airline is wholly-owned by a Cayman-registered company of the same name.

The airline reported a $11.3 million net loss for the first six months ended December 31, 2023, down from $12.6 million in the corresponding period a year ago. The result follows two consecutive net losses for the 2023 and 2022 fiscal years.

Revenue for the first six months surged 72.7 percent year-on-year to $20.6 million from $11.9 million. For the first six months of its financial year ending June 30, 2024, the airline experienced a negative cash flow of $2.2 million, declining from $4.8 million in 2023.

Expanding Asian routes
The airline flies 11 routes in Asia, including southern Chinese cities, Beijing, Shenzhen and Chongqing, Macau, Bangkok, Singapore, Ho Chi Minh and Nha Trang in Vietnam, Kuala Lumpur, and Koror (Republic of Palau).

For the six months ended December 31, 2023, passenger growth rose 2.6 times to 142,181 from 54,356 passengers in the corresponding period a year ago, which was a continued improvement from 2022.

Around the third quarter of 2024, Cambodia Airways plans to start operations in Hong Kong and Guangzhou, flights to Jakarta in the first half of 2025, Seoul in the second half while Tokyo and Osaka routes are expected in the first half of 2026. Frequency and flexibility of existing routes will be readjusted according to seasonal demands.
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by armchairlawyer »

rogerrabbit wrote: Tue Jun 11, 2024 1:55 pm
Is Cambodia Airways Going To List On The NASDAQ?

Cambodia Airways has filed and set terms on 30th May 2024 with the SEC (Securities Exchange Commission) for its intentions to list on the US NASDAQ and is seeking to raise several million US Dollars in an initial public offering (IPO).

The airline is a Cambodia-based company and the SEC filing by Cambodia Airways indicates it is offering 1.5 million Class A ordinary shares under the symbol CAKR at a price range of USD $4-5 which would generate net proceeds of about USD $4.6 million from IPO. One report suggests the airline will use the proceeds for aircraft leasing, new air routes development and working capital purposes.
https://b2b-cambodia.com/news/is-cambod ... he-nasdaq/

Extra nuggets of information from filing documents:
To reduce costs and operational challenges, we plan to acquire new long-range narrow-body aircraft like the A320neo and A321LR (“long range”) to enable us to offer direct flights of up to 8-10 hours. Between 2026 and 2029, we plan to introduce two new passenger aircrafts each year to expand our direct flight routes to the Middle East, North Asia and Australia.

We also plan to introduce wide-body aircrafts for business routes with lie-flat cabins, which we believe will enhance the airline’s brand and market presence while offering improved in-flight experiences for our passengers.

We plan to expand and integrate cargo services by incorporating dedicated freighter aircraft while partially utilizing our commercial flight aircraft space for freight needs. Additionally, we plan to focus revenue sources from our commercial flights such as in-flight catering and exclusive airport lounge.
You can find their official SEC filings on SEC website if you want take a look at their finances and other stuff
Interesting. Listing on the NYSE is very expensive for the company getting listed.
https://resourcehub.bakermckenzie.com/e ... %245%2C000.

A company seeking to list on the NYSE pays an application fee, an initial listing fee and annual fees. The NYSE's application fee is US$25,000, and the initial listing fee for common stock is a flat rate of US$300,000 and any additional class of common stock listed is a flat rate of US$5,000. Additional shares listed subsequently will require additional payments. The annual fee is a minimum of US$80,000 and increases depending on the number of shares listed. Subject to limited exceptions, the total fees that may be billed to an issuer in a calendar year are capped at US$500,000. Other fees are applicable to such corporate events as the listing of additional securities.

Additional costs include printing expenses and registration fees required by the SEC, as well as legal and accounting fees.
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by Alex »

Finally I will be able to buy stock in a Cambodian airline, that has been a childhood dream of mine.
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armchairlawyer
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by armchairlawyer »

Alex wrote: Tue Jun 11, 2024 4:34 pm Finally I will be able to buy stock in a Cambodian airline, that has been a childhood dream of mine.
Before you do that I would ask yourself why they did not simply list on the CSX in PP.
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by Bluenose »

If only I had a dollar for every time I've seen an airline saying how many planes they will be buying in two or four years' time and all the routes they will operate, only for nothing like that to happen...
And raising "several million dollars"? Surely that doesn't require a US exchange listing.
Their best bet would be to allow themselves to be half-bought by a "proper" airline.
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by Kammekor »

armchairlawyer wrote: Tue Jun 11, 2024 2:13 pm. However, the company is in the process of selling one of its A319 as the “condition is no longer suitable for the current market demand”.

Didn't they end up scrapping that one at Pochentong? One of their 319s has been standing there for a while, finally with the entire tail section removed, exposed to the tropical weather, until it was gone....
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by rogerrabbit »

Kammekor wrote: Tue Jun 11, 2024 6:51 pm
armchairlawyer wrote: Tue Jun 11, 2024 2:13 pm. However, the company is in the process of selling one of its A319 as the “condition is no longer suitable for the current market demand”.

Didn't they end up scrapping that one at Pochentong? One of their 319s has been standing there for a while, finally with the entire tail section removed, exposed to the tropical weather, until it was gone....
One was scrapped yes, but they do have two A319s in use currently.
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by newkidontheblock »

Obviously wants the glory of listing on a US stock exchange. Maybe solicitation of future government support.

But they give up a lot. US listing and reporting rules are pretty extensive. It would give detailed insight how a typical Cambodian company works.

Of course they could just lie about everything like some Chinese companies have done and hope no one catches them.

The pre IPO recommendation to sell is pretty worrisome.
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Re: Is Cambodia Airways Going To List On The NASDAQ?

Post by Randolphgb »

The amount the airline is looking to raise would be easy to finance on the private equity market. The paperwork, scrutiny and regulatory requirements of an overseas listing would probably hinder them. Seems like a silly plan just for prestige and publicity rather than commercial sense.
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