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Cellcard to hold IPO roadshows in May

The underwriter of the conglomerate Royal Group’s telecommunications operator CAMGSM PLC (Cellcard) plans to make a series of Initial Public Offering (IPO) roadshows in May.

Seng Chan Thoeun, Chief Executive Officer of SBI Royal Securities—the underwriter of Cellcard—said during a presentation of Cellcard’s IPO that the company plans to conduct IPO roadshows in four main cities and provinces in Cambodia. Chan Theoun said the roadshows will be conducted two times in Phnom Penh on May 13 and May 27. The first roadshow will take place in Sihanoukville on May 2 while the third roadshow will be held in Battambang on May 20.​ The roadshow in Siem Reap is scheduled to be held on May 21. 

Chan Thoeun said the first roadshow will take place at Prince Times Hotel in Sihanoukville, while the second and fifth ones will be organised in Hotel Cambodiana. Battambang City Hall will host the third, while the fourth one will be held in Sofitel Angkor Phokeethra Golf & Spa Resort.

“At each roadshow, our team members will set up booths to sell Cellcard SIM cards to the public so that they will become the Cellcard customers and thus be eligible to invest in the stock,” said Chan Thoeun, adding that investors who buy Class A voting shares will be entitled to get quarterly dividend—the first ever guaranteed quarterly dividend distribution. CAMGSM Plc was established in April 1996 and owned by Royal Millicom Co Ltd and Neak Okhna Kith Meng. Chan Thoeun indicated that Cellcard plans to sell its shares at $0.57 per share.

The Non-Bank Financial Services Authority (FSA) early this month approved in principle the proposal of CAMGSM PLC to raise $30 million through an IPO on CSX, which would increase the total market volume to more than $3 billion from the current level of around $2 billion. The FSA also urged Cellcard to fulfill the formal procedures of share issuance required by the Securities and Exchange Regulator of Cambodia (SERC).

Sou Socheat, SERC’s Director General, said that FSA approved the proposal based on the necessity of Cellcard’s telecommunications services for the economic development of Cambodia. He said it is among other necessary public services including water and electricity even though the issuance size is very small—less than five percent. “All council members agreed fully for the approval and lauded the applicants,” said Socheat, adding that Cellcard’s IPO would contribute to the development of the equities market and economy of the country.

Hong Sok Hour, CEO of CSX, told Khmer Times that Cellcard has the highest market capitalisation—approximately $1.4 billion—among the firms listed on CSX as normally technology or telecommunications firms are more valuable than other entities such as banks. “I think it may be the first step,” Sok Hour said. said Sok Hour, adding that Cellcard would be able to issue bonds on CSX for meeting its financial strategies.