Cambodia’s first small share capital already fully subscribed
The Growth Board got off to a flying start before its first business debuted.
DBD Engineering Plc’s 6,461,538 shares were sold ahead of its scheduled initial public offering (IPO) by the end of this year, according to its underwriter.
“We are not surprised by the positive reception from investors as we had obtained the demand from strategic investors before opening the subscription,” said the managing director of SRI Royal Securities, Seng Chan Thoeun. Khmer time.
DBD Engineering will be the first company to be listed on the Growth Board of the Cambodia Security Exchange (CSX) for small and medium enterprises (SMEs).
The CSX launched the board in 2015. It had failed to attract a listing until this year.
Thoeun said he believes the 5.5% guaranteed income plan – the highest offered in the exchange’s history – was also a big factor in the subscription’s success.
“The financial strength, its growth potential and its guarantee system make this IPO attractive for investors,” he added.
The roadshow for the new list was unusual due to the pandemic. Roadshows to investors were carried out digitally and travel was made impossible.
“Despite the difficulties during the Covid period, we believe investors were well informed about DBD Engineering’s financial fundamentals and its potentials through public roadshows, announcements and newspaper advertisements,” Thoeun said.
He also encouraged other SMEs to view IPOs as a way to raise capital in the future, noting that the Growth Board will eventually overtake the Main Board in terms of total listings going forward.
Thoeun said, “I believe that the success of DBD Engineering’s underwriting and IPO will encourage more SMEs to consider raising capital through the stock market. The company is already oversubscribed and raised the amount it needed. Mid-sized companies do not need substantial financing to be successful and it is not difficult to get it back in the capital market.