Garment makers gear up for IPOs

Two foreign-owned garment manufacturers will submit disclosure documents to Cambodia’s capital market regulator next month, the companies’ underwriter Phnom Penh Securities Firm Plc. said yesterday.

The initial public offerings for the two private companies, expected by the end of the year, should boost action on the Cambodia Securities Exchange.

The CSX’s only listed company, Phnom Penh Water Supply Authority, closed just above its IPO price yesterday. The solitary stock would continue to decline without accompanying firms, experts said.

Submission preparation for QMI International and TY Fashion, both Taiwanese companies, was “99 per cent complete”, Phnom Penh Securities chief executive Stephen Hsu said. 

“All the financial reports are finished. We will be ready to submit the disclosure documents to the [Securities and Exchange Commission of Cambodia] next month,” he said by phone.

Listing dates for the remaining state-owned firms were unclear yesterday. 

Telecom Cambodia has not designated a specific date, but insiders said the firm is expected to list in January.

Sihanoukville Autonomous Port earlier this year announced a July listing date, but officials yesterday said the deadline was unrealistic. 

“So far, we have tried our best to push the IPO forward as quickly as possible. All stakeholders have worked for this. But I think there is not enough time to list by next month,” Sam Sopheap, a member of the company’s IPO team, said yesterday. He declined to speculate on a date.

PPWSA would stagnate without more companies on the CSX, Hsu said. New IPOs, especially from private companies, would attract the attention of investors, he said. “One company is not interesting. If we don’t have more companies listing, the situation will continue like this,” he said.

Since late April, the price of PPWSA has gradually fallen toward its IPO price of US$1.53. The company closed at $1.55 yesterday.

Insiders have cited several reasons for the drop, among them originally overpriced shares, as well as a lack of long-term investors.

In November, Phnom Penh Securities said it would underwrite the IPOs for five companies this year. 

While QMI and TY Fashion have seen quick progress, other companies such as garment manufacturer Grand International Ltd and logistics firm Olair Dry Port Worldwide Co Ltd had been slower to organise. 

“It’s still the same problem. For some companies, it’s taking longer for them to get into order,” Hsu said.