Cambodia's Second Stock Listing Delayed Again, Shocking...
Posted: Thu May 29, 2014 8:41 pm
The second planned IPO for the Cambodian stock exchange has been delayed, once again.... and I'm guessing it will get delayed again in June....
So for now, the only company listed on their stock exchange is the government owned water supply....
So for now, the only company listed on their stock exchange is the government owned water supply....
A Taiwanese-owned garment maker on Thursday postponed its planned Cambodia listing by two weeks, in yet another delay to what would be just the second initial public offering to be held in this developing Southeast Asian nation.
Grand Twins International (Cambodia) PLC now plans to list on June 12—postponing its trading debut set for Thursday—after public holidays caused delays in finalizing the results of its $19.3 million flotation, the IPO's sole underwriter Phnom Penh Securities said in a statement.
The Cambodia-based garment maker sold eight million shares, or 20% of the company, at $2.41 apiece in its IPO, which was oversubscribed, Phnom Penh Securities said. The price is below the midpoint of the indicative range of $1.85 to $3.50 a share.
Interest in the Grand Twins offering has been hurt by concerns over the prospects of Cambodia's garment industry, which has been hit by labor unrest and rising costs, analysts and brokers said.
Thursday's postponement was the second time Grand Twins delayed its publicly announced listing date. The company first set its trading debut for May 8, before pushing it back by three weeks due to delays in getting regulatory approval.
Underwriters and brokers have expressed hope that the Grand Twins IPO could rejuvenate Cambodia's stock market, which has foundered since hosting its first-ever listing in April 2012, the $20 million flotation of state-owned Phnom Penh Water Supply Authority.
Two other state-owned enterprises, a telecommunications firm and a port operator, were slated to list by the end of 2012, but those plans were shelved.
Other IPO candidates have either struggled to meet regulatory requirements or have decided to hold off until the market gains depth and liquidity. Grand Twins, for instance, had considered listing as early as 2012 but put it off due to compliance issues and concerns about market liquidity, its IPO underwriter had said.
Grand Twins, whose primary customer is German sportswear firm Adidas AG ADS.XE -0.56% , had $54.9 million in revenue in 2012, mainly from apparel exports to retailers in Europe and the U.S.
Tens of thousands of garment workers in Cambodia went on strike from late December until early January to press for higher wages, and unions have threatened fresh job actions unless labor officials raise the industry minimum wage to $160 a month--$60 more than the government's latest offer.
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http://online.wsj.com/articles/cambodia ... 1401341456