Phousy Construction and Development Public Co to launch public share offering
Phousy Construction and Development Public Co to launch public share offering
Phousy Construction and Development Public Co (PCD) has sought permission from the committee in charge of Lao Securities Exchanges (LSX) to launch a share offer to raise funds for the operational needs of the company.
The PCD has submitted a proposal to the committee asking for permission to launch an initial public offering (IPO) of 150 million shares and the company expects to raise not less than 300 billion kip.
Phousy Construction and Development Public Co held a press conference earlier this week in Vientiane to announce its intentions publicly.
The expected mobilised funds will be used to purchase machinery and equipment for construction works and research and development purposes.
The fund will also be used as turnover capital for construction works and the business operations of the company.
A financial consultant revealed that the company has enjoyed strong business operations with a backlog of work in which income will be generated amounting to about 393 billion kip.
In addition, the company is conducting survey and design work to bid for contracts of works that would amount to 1,276 billion kip, due to the fact that the Lao PDR still needs massive investment to develop its infrastructure coupled with the fact that the nation has enjoyed outstanding economic growth compared to other countries in Southeast Asia.
Mr Sithong Phommachith, President of the PCD Board of Directors - one of the leading design, engineering, procurement, and construction service providers, said the company submitted the proposal on November 16, 2016 to sell 150 million shares with each share expected to cost not less than 2,000 kip (PAR value).
Currently, the company has registered capital of 700 billion kip and once it is registered on the LSX the registered capital will rise to approximately 1,000 billion kip.
The cost of the IPO will be precisely defined once the LSX committee approves the company's proposal.
The company has set an ambitious goal to become the country's leading construction and development service provider towards expanding its business services into the Asean Economic Community.
Phousy Construction and Development Public Co expects to raise not less than 300 billion kip from this mobilisation [IPO], Mr Sithong said.
He stated that 45 billion kip of the funds to be raised will be used to purchase machinery and equipment for construction works.
Another 15 billion kip will be used for analysis and development affairs, 150 billion kip will be used as turnover capital for construction affairs, 60 billion kip will be used as turnover capital for the company's business operations while about 30 billion kip will be used to repay existing loans.
PCD's CEO, Ms Philaiphone Vongpraseuth said the company currently has contracts for three projects, which are under the construction totaling some 840 billion kip.
She added that the company has also carried out survey and design on some other projects and is prepared to participate in biddings. The combined cost of these projects is expected to reach about 1,276 billion kip.
Ms Philaiphone said the company has employed a qualified and competent team of engineers and staff as well as modern construction technologies and equipment to deliver good quality works in a timely fashion.
Due to these factors, the company has gained the confidence of customers that will enable it to grow rapidly, Ms Philaiphone said.
Mr Somphob Sakphanphanom, Director General of APMLAO [APM (LAO) Securities Company Limited, has foreseen high potential in the infrastructure development businesses in Laos given that as a landlocked country it needs to develop its road connectivity infrastructure to link its trade routes with five neighbours to boost the robust economic growth that has been secured over recent years.
Due to this potential, he believed that PCD will grow further, especially once it is registered with the LSX as additional funds can be raised to facilitate the company's development and operational needs.
