Pestech to list IPO on CSX this year
Pestech to list IPO on CSX this year
Pestech (Cambodia) Ltd (PCL), a subsidiary of Malaysia-based Pestech International Bhd, plans to list an initial public offering (IPO) on the nascent Cambodia Securities Exchange (CSX) this year to build the company’s operations and reputation in the Kingdom.PCL has clinched three electricity infrastructure contracts to date in the Kingdom – the 230kV/500kV Sihanoukville-Bek Chan (Phnom Penh) transmission line, the 115kV Siem Reap-Oddar Meanchey transmission line and the 230kV Kampong Cham-Kratie transmission line.
Malaysian media outlet The Edge Markets on Tuesday quoted PCL CEO and executive director Paul Lim Pay Chuan as saying the company has identified its cornerstone investors and the IPO – initially proposed in February 2016 – should materialise by the middle of this year.
“It took us a fair bit of time because we are trying to get industry players who can add value to our business operations in Cambodia to become our investors, rather than just finding normal financial investors,” Lim was quoted as saying.
He said the paperwork is being finalised and the IPO is pending final approval, before adding that the main objective of the IPO is not to raise funds but to raise PCL’s profile.
“We believe these cornerstone investors could help us grow in Cambodia and the Indochina region. We hope to retain an 80 per cent stake in PCL at the end of the listing exercise. The rest will be held by the cornerstone investors and public investors,” said Lim.
On Thursday, CSX confirmed that PCL is set to list on the bourse soon.
Upon listing, it is expected to be worth about $60 million in terms of market capitalisation, reported The Edge Markets. The company plans to raise fresh capital of about $10 million.
