IPO for Phnom Penh Port

The company will issue some 4,136,873 Class A Voting shares priced between KHR 4,405 ($1.08) – KHR 6,320 ($1.55) per share according to the prospectus. The floatation is due to start on December 11.

While PPAP is pitching its offering on its growth to date and its resilience in the face of economic turmoil it also outlines the three pillars in its business strategy going forward: “improving and strengthening, expanding, and diversifying.”

Expansion involves not only the New Container Terminal in Phnom Penh but other facilities at key provinces like Kampong Chnang, Kratie and Kampong Cham, the prospectus said. PPAP will also look at building up products lines among them “container traffic, general cargoes, bulk cargoes as well as tourists”, the prospectus added.

Of the diversification it mentions an Inland Container Depot within the port’s supporting facilities to act as a main logistics centre, and dredging.

Part of PPAP’s sales pitch, as outlined in the prospectus, is that it has “not only shown solid growth but also exhibited high resilience.

Between 2010 and 2014, container throughput doubled from 62,256 teu to 133,666 teu, increasing at a CAGR of 21.05%, the prospectus added.