PCD expects at least 2,000 kip IPO issue price
PCD expects at least 2,000 kip IPO issue price
Phous y Construction and Development Public Company (PCD) signed a Memorandum of Understanding with Lanexang Securities Public Company to appoint them as lead-underwriter for its initial public offering (IPO).
The agreement was signed by Chairman of the PCD's Board of Directors, Mr Sithong Phommachith and the Director Gener al of the Lanexang Securities Public Company, Mr Nalinh Silavongsith.
The signing ceremony took place in Vientiane last week in the presence of representatives from the concerned sector.
Speaking a t the signing ceremony, Mr Sithong stressed that PCD would continue its public share offe ring roadshow in Singapore today (December 13) following presentations in Vientiane, Luang Prabang province and Hong Kong.
Mr Sithong highlighted that PC D submitted a proposal to the Lao Securities Exchange (LSX) committee asking for permission for an IPO of 150 million shares with each share expected to cost not less than 2,000 kip (par value).
The cost of the IPO will be precisely defined once the committee approves the company's proposal with each share expected to trade for between 2,500-2,800 kip once listed, Mr Sithong said.
With its capacity, standards and other qualifications, Mr Sithong said PCD expected to raise at least 300 billion kip from this mobilisation.
The mobilised funds will be used to purchase machinery and equipment for construction works and research and development purposes. The company will also use funds as turnover capital for construction works and the company's business operations.
I'm confident that the share offer will be able to sell out and the group would pay dividends to shareholders twice a year, Mr Sithong added.
Out of all mobilised funds, some 45 billion kip of the funds to be raised would be used to purchase machinery and equipment for construction works, according to PCD.
Another 15 billion kip will be used for analysis and development affairs, 150 billion kip as turnover capital for construction, 60 billion kip as turnover capital for the company's business operations while about 30 billion kip will be used to repay existing loans.
Director General of the Lanexang Securities Public Company, Mr Nalinh Silavongsith, who is the lead-underwriter of PCD, said PCD previously announced it would offer 150 million shares at their IPO with a par value of 2,000 kip.
As a result of the roadshow being conducted both in Laos and overseas and investors' inquiries regarding the business plan and fund raising plans for the future, we think being listed on the LSX will further boost company growth. Therefore, we are quite confident that listing our shares will receive a good response from investors, Mr Nalinh said.
PCD will be the first of the Phousy group's assets to register on the stock exchange next year, before its other companies follow suit at a later date.
For more information please contact: info@phousy.com or www:phousy.com.
