Souvanny Company lists on LSX
Souvanny Company lists on LSX
The Souvanny Home Centre Public Company (SVN) was officially listed on the Lao Securities Exchange (LSX) on Friday, seeking to raise capital to fund its business expansion.
By fundraising on the LSX, the company intends to open three new branches and the rest of the money raised will be used as working capital for the business.
One of its new branches will be on the 450 Year Road in Vientiane and is expected to open next year, while the other two are planned for Pakxe district, Champassak province, and Pakxan district, Borikhamxay province.
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 more than 400 brands with over 30,000 product lists including construction materials, roof tiles, decorating items, paint, tubing, electrica l appliances, tools, sanitary ware, elevators, escalators, and furniture, the CEO of Souvanny Home Centre Public Company, Mr Waddana Soukhabandith said at the ceremony.
The company sells its products to different customer groups such as six percent being project customers and 78.9 percent being general customers at its four branches, Mr Waddana said.
He b elieved that the company's shares will be well received by investors as the company has set out a clear spending plan from its share fundraising and is aiming at continued business growth.
Souvanny has recorded operating result s 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.
In the six months fr om January to June in 2015, the company earned 167.84 billion kip and 12.18 billion kip of net profit.
The fundraising will help the company to grow rapidly and increase its potential to compete with rivals as part of the upcoming Asean Economic Communit y (AEC).
CEO of APM (LAO) Securities Co., Ltd., Mr Somphob Sakpunpanom, which is the financial advisor to Souvanny, assured that the Souvanny shares will be a good choice and generate income for investors who are interested in the LSX.
During the initial public offering (IPO), Souvanny Company received a lot of interest, with bot h Lao and foreign people booking shares in the company.
Souvanny Company was established in 1988 and becomes the fifth company to list on the LSX after Banque Pour Le Commerce Exterieur Lao, Electricite du Laos Generation Public Company (EDL-Gen), Lao World Public Company and the Petroleum Trading Lao Public Company (PTL).
