Souvanny roadshow to spark IPO interest
Souvanny roadshow to spark IPO interest
The Souvanny Home Centre Public Company is taking to the road to advertise its initial public offering (IPO) before listing on the Lao Securities Exchange (LSX) next month.
The a im of the road show is to publicise the company's business progress, management, potential and future plans.
The road show will take place in Vientiane and the provinces of Khammuan, Savannakhet, Champassak, Vientiane and Luang Prabang from November 5-16, the company announced at a press conference in Vientiane on Friday.
The press conference was attended by the Acting Director General of the Lao Securities Commission Office (LSCO), Mrs Saysamone Chanthachuk, LSX CEO Mr Vanhkham Voravong, Lanexang Securities Public Company CEO Mr Nalin Silavongsith, officials and business operators.
The CEO of Souvanny Home Centre Public Company, Mr Waddana Soukhab andith, said the company has submitted an lPO application to the LSCO for the issuing of 25 million shares with a par value of 2,000 kip.
With the funds raised through the IPO, the company intends to open three new branches. One will be on the 450 Year Road in Vientiane, while two others are planned for Pakxe district, Champassak province, and Pakxan district, Borikhamxay province.
The rest of the money raised will be used as working capital for the business, Mr Waddana said.
The fundraising will help the company to grow rapidly and increase its potential to compete with rivals in the upcoming Asean Economic Community.
Souvanny currently has four branches, in Phonthong, Sikhai, Thongkhankham, and Thongtoom, and imports about 80 percent of its quality products from Thailand and the rest from China.
The company sells tiles, construction materials, roof tiles, decorating items, paint, tubing, electrical appliances, tools, sanitary ware, elevators, escalators, and furniture.
Souvanny has recorded operating results for the past three years as follows: in 2014, the company earned revenue of 311.37 billion kip and a net profit of 21.33 billion kip.
In 2013, the company brought in revenue of 264.37 billion kip and recorded a net profit of 14.18 billion kip, while in 2012 the company earned revenue of 230.45 billion kip and a net profit of 10.64 billion kip.
When the company lists on the LSX, it will give investors more confidence in its trading competition, along with greater confidence among both foreign and local customers, and a better reputation in the i nternational market, said the CEO of APM (LAO) Securities Co., Ltd., Mr Somphob Sakpunpanom, who is the financial advisor to Souvanny.
“Larger capital reserves can help the company to open new branches, new product lines, new target markets, and also new distribution channels,” he said.
The company will be capable of generating a satisfying return for shareholders and investors, he added.
At present four companies are listed on the Lao stock market: Petroleum Trading Lao Public Company, Lao World Public Company, Banque Pour Le Commerce Exterieur Lao, and Electricite du Laos Generation Public Company.
