A Chinese conglomerate has begun preparations for the process of raising equity from public investors by issuing shares and listing them for sale for the first time, in what will be called an initial public offering (IPO) on the Cambodian Stock Exchange next year, the top official said the securities regulator.
According to the official, senior officials from Honchen Group and brokerage firm Golden Fortune (Cambodia) Securities Plc signed an agreement last Tuesday that allows the former to mandate the latter to prepare documents to meet legal requirements.
Sou Socheat, director-general of Cambodia’s Securities and Exchange Commission (SERC), told the Khmer Times on Friday that Honchen Group and Golden Fortune signed the deal to form an IPO team that will assist Honchen in the IPO process , particularly when preparing a due diligence report and disclosure document.
“They are preparing for the IPO next year! They signed to set up the IPO team in accordance with the regulator’s rules and regulations. The IPO team will work towards listing the company next year. They may have to submit their IPO plan to SERC in the next few months,” Socheat added.
Honchen Group will also apply to the SERC for public issuance of equity securities after eligibility review by the Cambodia Securities Exchange (CSX), with the primary mandate being to establish and operate a securities market, clearing and settlement facility and custodian with the Law on the Issuance and Trading of Non-Government Securities and its Subsequent Regulations.
Socheat added that Golden Fortune – a securities broker who acts as an intermediary between sellers and buyers of shares listed on an exchange, or as an agent for a client and charges the client a commission for its services – has to work with RHB Securities (Cambodia) Plc following an agreement they have signed to assist Honchen Group in preparing an application for admission to the CSX.
RHB Securities acts as a securities issuer – a key entity in the IPO process, principally by providing IPO process arrangements on behalf of Honchen or participating directly or indirectly in the process, preparation of disclosure documents and due diligence reports for pricing and advice on the number of shares listed and timetable for the IPO.
“They have only just started the process. No documents have been submitted yet. You must first work with an underwriter. We welcome the group to our market,” he said, adding that the IPO team that will be formed after the deal is signed will next look to the public listing of Honchen Group in Cambodia – a Honchen (Hong Kong) subsidiary. Holdings Limited – is working towards year.
The agreement was signed by Cao Jun, CEO of Honchen Group, and Zhang Lingfeng, Managing Director of Golden Fortune, at a dedication ceremony for Platinum Coast’s gallery building at the project’s sales office near Sihanoukville International Airport. According to a statement from Lixin Group, the project is the investment joint venture between multinational company Honchen Group and Lixin Group.
These two companies will develop the hundreds of millions of US dollars Platinum Coast project on 50 acres of land into a massive, world-class tourism and leisure hub in Sihanoukville New City of Lixin on 2,500 acres of land with natural scenic resources and a beach alongside mountains with View of the sea in Sihanoukville.
“The company has officially started preparations for listing with the encouragement of Cambodia’s securities regulator and expects to be listed on the country’s stock exchange in the second half of next year,” the press release said, adding who operates Honchen Group Businesses in Cambodia, China, Hong Kong, USA and Malaysia.
“The group has businesses in finance, real estate development and management, environmental protection, clean energy, trade events, trade, hotels and tourism development, which have grown rapidly both at home and abroad,” the press release said.
There are currently nine listed companies, seven of which are listed on the Main Board and two on the Growth Board of the securities market, according to the Securities Trading Statistical Bulletin for the second half of 2022 published by SERC.
Seven stocks on the main board include state-owned Phnom Penh Water Supply Authority, apparel company Grand Twins International, state-owned Phnom Penh Autonomous Port, special economic zone Phnom Penh SEZ, state-owned Sihanoukville Autonomous Port, ACLEDA Bank and Pestech. Two stocks on the growth board are DBD Engineering and JS Land — last listed on the growth board in February 2022.
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