Cambodia Investment Review

DBD oversubscribes first CSX growth board listing, strategic investors buy almost half

DBD oversubscribes first CSX growth board listing, strategic investors buy almost half

The Cambodia Securities Exchange (CSX) first growth board listing DBD Engineering has oversubscribed its book-building process, held from the 26th of July to 18th of August. Brokerage firm SBI Royal sold all 6,461,538 shares at KHR 2,380 raising $3.88M.

There were over 3.4 million shares sold to strategic investors. If removing the strategic investors there was a total of 949 individual buyers which equates to 3,226 shares valued at KHR 9.12 billion ($2,282) on average per investor.

Individual investors or firms who invest intending to acquire strategic advantages rather than simply financial returns are called Strategic Investors. SBI Royal Securities has received in-principal approval from Cambodia Securities Exchange (CSX) to be the Liquidity Provider (LP).

The stock will be the first company to list on the board designed for SMEs to raise capital since its launch in 2015. All buyers have been guaranteed a 5.5% minimum guaranteed dividend for the first three years.

The company said it intends to use 30% of the IPO proceeds to fund its construction business, allocate 20% for additional working capital, 10% to the purchase and upgrade of equipment and use the remaining 40 percent for other general corporate purposes.

DBD reported total revenue of $12.53 million last year and is forecast to generate $12.71 million in 2021. The company has 700 employees and has been involved in the construction of Aeon Malls 1 and Two, as well as the Chip Mong Shopping mall and Calmette Hospital, among other projects.

The CSX has announced an in-principal approval of the condominium developer JS Land Plc for the exchange’s second Growth Board listing

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