Acleda to be listed on CSX

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Acleda Bank Plc announced plans for an IPO after the government paved the path for it to be the first Cambodian commercial bank to be listed on the CSX. Hong Menea

Locally-owned Acleda Bank Plc will become the first commercial bank to be listed on the Cambodia Securities Exchange (CSX).

It received an official letter to this effect from the National Bank of Cambodia (NBC) on November 26, which allows it to proceed with its plans for an Initial Public Offering (IPO).

 

A press release from the bank received by The Post on Sunday said Acleda Bank’s IPO will be promoted as the “People’s IPO” to encourage retail investors and the public to buy shares according to their financial ability.

Acleda’s president and group managing director In Channy who confirmed this said: “We just received an official letter from the NBC to proceed to the next stage of the IPO process with the Securities and Exchange Commission of Cambodia (SECC).

“Our shareholders have unanimously agreed that the bank should become public to diversify our sources of funding and utilise the Cambodian capital market for our future growth.

“On this occasion, we would like to inform our customers and the public that Acleda Bank Plc’s shares will be available for investment after getting further approvals from the CSX and the SECC.

“We will make public announcements on the date of book building and subscription soon. This will be a unique opportunity for the public to become shareholders of Acleda Bank Plc.”

Han Kyung Tae, the managing director of Yuanta Securities (Cambodia) Plc, which will be handling the IPO projects for Acleda, said that its presence will give a positive impact on the stock market as one of the largest commercial banks in Cambodia.

 

“We are very excited to be part of such a monumental project as the sole financial advisor. The stimulated trading volume and increased number of investors resulting from Acleda bank’s IPO will truly change the dynamics of the stock exchange.

“It will fundamentally transform the Cambodian capital market to reach a new stage of development,” he said, adding that the total market capitalisation of the CSX could triple with Acleda Bank Plc’s IPO.

Chief Operations Officer of the CSX Ha Jong Weon also said that the listing of Acleda on the bourse will be a new point of attraction for investors on the Kingdom’s stock market.

“We are happy that leading financial institutions may raise funds in Cambodia securities market and listing of good financial institutions can contribute to the development of Cambodia’s economy.

“As long as they can raise funds at a lower cost in the securities market, they could lend money to Cambodia and business enterprises at a lower price,” said Ha.

Data from the CSX said the stock exchange has had five companies listed on the main board, and three financial institutions and banks had issued bonds. These listed firms had raised a combined $120 million within seven years since CSX started.

Over the past 27 years, Acleda Bank Plc has transformed from an NGO to one of the largest commercial banks operating in the Kingdom.

As of September, Acleda Bank Plc had become the largest bank in Cambodia in terms of gross loans ($3.61 billion) and total equity ($898.56 million), and the second largest in terms of total assets ($6.09 billion) and total deposits ($4.24 billion).