Condominium developer JS Land launch on Cambodia Securities Exchange Growth Board yesterday under the ticker (CSX:JSL) rising from its IPO of KHR 1,900 a share to lockout today at KHR 2,660 a 40% (KHR 760) increase in two days of trade.
It should be noted that on the first day of an IPO launch the usual 10% daily trading limit is modified to per hour allotments reverting back to a 10% limit the following day.
JS Land is the CSXs Growth Board second only listing after DBD Engineering last year and the 15th company to list either bonds or shares on the exchange since inception in 2011.
The IPO listed 8,281,000 shares (32.21% of total shares) at KHR 1,900 or $0.467 per share raising $2.12 million and putting the company’s market capitalization at $12 million. There will not be a guaranteed annual return.
Speaking at the launch event from Kuala Lumpur Dato Jack Yap, CEO of JS Land said: In the next few years, we want to reward our shareholders with the actual capital gain and sustainable dividend payout.
He also thanked his team, the CSX, listing partner RHB Securities (Cambodia), property consultants and valuer Knight Frank’s Ross Wheble, and the cornerstone investors.
According to official documents major shareholders (5% of more) are Oknha Koy Le San 25.2%, Dato’ (Jack) Yap Ting Chiat 25.2%, Oknha Meng Lee 6.80% and Mr. Kin Solyta 6.80%.
Keynote speakers at JS Land launch on CSX
The official launch ceremony in Cambodia was attended by several dignitaries including Oknha Koy Lesan, Executive Chairman of JS Land Plc.
H.E. Sou Socheat, Royal Government Delegate in charge as Director-General of the Securities and Exchange Regulator of Cambodia expressed that today is the first listing event in 2022 and JS Land is the first company in the real-estate sector that enters the Cambodia Securities Exchange (CSX).
He added that JS Land is a good and transparent company that dares to list on the stock exchange with good corporate governance, transparent financial statements providing trust to the customers not only for one day or one year but forever as the customers have the right to occupy condominiums of JS land.
H.E. Hong Sok Hour, Royal Government Delegate in charge as CEO of Cambodia Securities Exchange (CSX) addressed as of this listing day CSX has a total of 15 listed companies including 9 stock-listed companies and 6 bond-listed companies.
The fundraising from the securities market in total is approximately USD 281 million. These companies not only have access to low-cost and long-term sources of capital but also receive tax incentives from the Royal Government, increase their reputation both local and international market, attract high attention from potential business partners and gain more trust from customers, investors and the public.
Oknha Koy Lesan, Executive Chairman of JS Land Plc. mentioned that raising funds through the exchange allows us to expand ourselves and accelerate the company’s master plan to materialize in the near future.
In addition, to being a listed company on the exchange will give the company a competitive advantage, build trust and at the same time create a market to address customers’ value real-estate operation of the company itself. and business Cambodia Securities Exchange Securities.
Location and land banking key for JS Land success
Cambodia Investment Review has previously reported that the majority of funds raised will be directed towards the developer’s new 31-storey condominium is Phnom Penh’s Sen Sok District – with a one bedroom and two-bedroom unit at $39,000 with buyers can get a home with a $299 monthly payment with no interest nor down payment.
“Demand in the affordable condominium market [under $70,000] should remain strong – while the higher-end market may begin to drop over the next few years due to oversupply concerns,” Jack said.
The company expects to generate revenue and net profit of $23.47 million and $10.09 million respectively in 2023 from the sales of the Garden Residency 2 upon completion and handover of the project.