Souvany moves one step closer towards stock market listing
Souvany moves one step closer towards stock market listing
Souvanny Home Centre Public Company announced last Friday that it has submitted initial public offering (IPO) documents with the Lao Securities Commission Office (LSCO) , signaling its intention to make 25 million shares available to the public through the Lao Securities Exchange (LSX).
With the funds raised through the initial public offering, Souvanny Home Centre Public Company intends to launch three new branches and use the rest as working capital for the business.
Financial advisors said the fundraising will help the company grow rapidly and increase the company‘s potential to compete with rivals in the upcoming Asean Economic Community at the end of 2015.
The CEO of Souvanny Home Centre Public Company, Mr Waddana Soukbandith told media in a press conference at Landmark Riverside Hotel in Vientiane last Friday that the company submitted the lPO application to the LSCO for the issuing of 25 million new shares with a par value of 2,000 kip.
The company currently has 280 billion kip of paid-up capital with a par value of 2,000 kip. After the IPO, the company will have 330 billion kip of paid-up capital with a par value of 2,000 kip and the IPO price will be set after the company gains permission from the LSCO to issue the IPO.
Souvanny currently has four branches, Phonthong, Sikhai, Thongkhankham, and Thongtoom.
The products of the company can be separated into seven groups which include tiles and construction materials, roof tiles and decorations, paints and tubing, electrical appliances and tools, sanitary wares, elevators and escalators, as well as furniture.
The company offers customers a full range of services from retail to trade services as well as project work.
“The money that will be raised through the capital market will be used to launch three new branches, which shall be located on the 450 Year Road in Vientiane, as well as in Pakxe and Pakxan, Mr Waddana said.
“The rest will be used as working capital to support developing the business and preparing for the upcoming AEC at the end of 2015, which is expected to attract investment from both industrial clients and household consumers, helping the Lao economy to grow significantly.”
CEO of APM (LAO) Securities Co., Ltd, Mr Somphob Sakpunpanom, who is the financial advisor to Souvanny said that SVN had already filed documents with the LSCO on September 23 in order to list on the LSX.
It is expected that the share market listing will help the company grow rapidly and increase the company's potential to compete with competitors in the upcoming AEC at the end of 2015.
The company has recorded operating results for the past three years as follows: In 2014, the company earned revenue of 311.28 bi llion kip and a net profit of 21.25 billion kip.
In 2013, the company brought in revenue of 264.37 billion kip and recorded a net profit of 14.19 billion kip, while in 2012 the company earned revenue of 230.45 billion kip and a net profit of 10.64 billion kip.
“The company has a bright future ahead as it has potential to grow immensely because it will have an even better reputation in the international market once it has listed on the LSX, and its capital will be stronger, which will help the company launch new branches, new product lines, new target markets, and also new distrib ution channels,” said Mr Somphob.
“The company will be capable of generating a satisfying return back to the shareholders and investors.”
