Phousy Construction and Development Public Company (PCD) will continue its public share offering roadshow in Hong Kong and Singapore next week in an effort to raise funds for the operational needs of the company.
Chairman of the PCD’s Board of Directors Mr Sithong Phommachith made the statement during the public share offering roadshow launched in Vientiane on Monday night.
In his opening remarks, Mr Sithong stressed that PCD-one of the nation’s leading design, engineering, procurement, and construction service providers- will also launch a similar event in Luang Prabang province today (December 7), saying The public share offering roadshow will help investors to understand the company, especially its vision and development plans.
PCD recently has sought permission from the Lao Securities Exchange (LSX) committee to launch a share offer to raise funds for the company’s operational needs.
Mr Sithong said the PCD submitted a proposal to the committee asking for permission for an initial public offering (IPO) of 150 million shares and the company expected to raise not less than 300 billion kip from this mobilisation.
He highlighted that the expected mobilised funds will be used to purchase machinery and equipment for construction works and research and development purposes.
We will also use funds as turnover capital for construction works and business operations of the company, Mr Sithong said.
He expected the share offer to sell out and said the group would pay dividends to shareholders twice a year.
A financial consultant revealed that the company has enjoyed strong business operations with a backlog of work which will generate about 393 billion kip in income.
In addition, the company is conducting survey and design work to bid for contracts that would amount to 1,276 billion kip, due to the fact that Laos still needs massive investment to develop its infrastructure and the nation enjoying outstanding economic growth compared to other countries in Southeast Asia.
Mr Sithong said PCD submitted the proposal on November 16, 2016 to sell 150 million shares with each share expected to cost not less than 2,000 kip (par value).
At present, the company has registered capital of 700 billion kip and once it is registered on the LSX the registered capital will rise to approximately 1,000 billion kip.
The cost of the IPO will be precisely defined once the LSX committee approves the company’s proposal.
The company has set an ambitious goal to become the country’s leading construction and development service provider towards expanding its business services into the ASEAN Economic Community.
He stated that 45 billion kip of the funds to be raised will be used to purchase machinery and equipment for construction works.
Another 15 billion kip will be used for analysis and development affairs, 150 billion kip will be used as turnover capital for construction affairs, 60 billion kip will be used as turnover capital for the company’s business operations while about 30 billion kip will be used to repay existing loans.
Speaking briefly during the meeting, PCD’s CEO Ms Philaiphone Vongpraseuth, said the company currently has three undergoing construction projects totalling of about 840 billion kip.
In her presentation, Ms Philaiphone stated that the company had also carried out survey and design on some other projects and is prepared to participate in biddings. The combined cost of these projects is expected to reach about 1,276 billion kip.
Ms Philaiphone said the company employed a qualified and competent team of engineers and staff as well as modern construction technologies and equipment to deliver good quality work in a timely fashion.
Due to these factors, the company had gained the confidence of customers enabling it to grow rapidly, Ms Philaiphone added.
APM (LAO) Securities Company Limited CEO Mr Somphob Sakpanpanom said he strongly believed that PCD would grow further, especially once it is registered with the LSX as additional funds can be raised to facilitate the company’s development and operational needs.
Monday’s meeting was attended by Minister of Public and Works and Transport Dr Bounchanh Sinthavong, the Deputy Governor of the Bank of Lao PDR Mr Sonexay Sitphaxay, senior officials from line ministries and organisations concerned, and other invited guests.
Source: Vientiane Times