ASEAN KEY DESTINATIONS
TY Fashion to become third firm on bourse
Taiwanese-owned garment manufacturer TY Fashion (Cambodia) Plc is targeting a midyear listing on the bourse following approval on Friday from the Cambodia Securities Exchange (CSX), according to a press release from its underwriter, Phnom Penh Securities (PPS).
TY Fashion would be the third company and the second Taiwanese-owned garment firm to join the Kingdom’s fledgling bourse after Grand Twins International listed in June of 2013.
“This IPO will succeed, with PPS being the marketer and underwriting the shares,” said Lamun Soleil, deputy director of market operations at the CSX.
Soleil predicted that as the garment industry picks up its pace, garment stocks will gain renewed interest from investors.
“The garment industry seems to be more stable now, with the new salary level accepted by the majority of unions and the government trying to lower the electricity cost [for garment workers],” he said.
A TY Fashion staffer confirmed the listing and said the company had already submitted a prospectus to the Securities and Exchange Commission.
“We don’t have any concerns about our future listing as our business is operating very well,” said the staffer who asked not to be named.
Sou Socheat, director general of SECC, could not be reached.
TY Fashion was incorporated in Cambodia on July 1, 2008, and manufactures clothes for international brands including H&M.
The garment manufacturers competitor, Grand Twins International, closed at 6,600 riel ($1.62) per share at the close of trading yesterday.
Sihanoukville Autonomous Port recently told the Post that after years of preparation it also planned to be listed by the middle of 2015, but it remains unapproved by the CSX.
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