PCD's Roadshow attracts numerous foreign investors, Chairman says
PCD's Roadshow attracts numerous foreign investors, Chairman says
Numerous investors from Asean member countries and other regions are now interested in buying shares in the Phousy Construction and Development Public Company (PCD).
This information was confirmed recently by the Chairman of PCD's Board of Directors, Mr Sithong Phommachith after his return from the launch of the public share offering roadshow in Hong Kong and Singapore on December 12-13.
Mr Sithong stressed that the main objective of the public share offering roadshow was to raise funds for the operational needs of the company, saying The public share offering roadshow will help investors to understand the company, especially its vision and development plans.
Following the information presented during roadshows both in Laos and overseas, the PCD submitted a proposal to the committee asking for permission for an initial public offering (IPO) of 150 million shares with each share expected to cost not less than 2,000 kip (par value).
The company will also use funds as turnover capital for construction and the company's business operations.
PCD's CEO, Ms Philaiphone Vongpraseuth said both local and foreign investors are now willing to invest in the company after they have obtained information about the company's vision and development plan.
Ms Philaiphone highlighted that the company has set an ambitious goal to become the country's leading construction and development service provider to wards expanding its business services into the Asean Economic Community.
With its capacity, standards and other qualifications, PCD will reach its goal of raising at least 300 billion kip from this mobilisation, Ms Philaiphone added.
APM (LAO) Securities Company Limited CEO, Mr Somphob Sakpanpanom, said in his capacity as PCD's financial advisor that PCD submitted a proposal on November 16, 2016, to sell 150 million shares with each share expected to cost not less than 2,000 kip (par value).
At present, Mr Somphob said 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.
In 2013, PCD generated over 118 billion kip of income from services (38.55 billion kip profit), 93.2 billion kip in 2014 (72.6 billion kip profit) and 144.6 billion kip for 2015 (around 68 billion profit), as well as 97.9 billion kip in the first six months of this year (77.2 billion kip profit).
Director General of Lanexang Securities Public Company, Mr Nalinh Silavongsith, said in his capacity as PCD's lead-underwriter for its initial public offering that foreign investors are trending to buy PCD's shares because of the steady increase in its business, especially basic infrastructure development in Laos.
At present, the government is strengthening the improvement of basic infrastructure, especially the upgrade of roads to ease transportation.
The important thing is that the country shares borders with its five neighbouring countries, including Cambodia, China, Myanmar, Thailand and Vietnam which facilitate the communication and transportation due the opening of AEC.
The cost of the IPO will be precisely defined once the committee approves the company's proposal, Mr Nalinh added.
PCD is one of the nation's top design, engineering, procurement, and construction service providers.
