Cambodia's nascent stock market is set to double its number of listed companies when Taiwan garment company Grand Twins International becomes the second firm to go public in the Southeast Asian nation. Grand Twins, one of the largest clothing manufacturers operating in Cambodia and which counts Adidas and Reebok among its clients, is scheduled to make its market debut on May 29 after a $19.3 million IPO.
Seeking working capital and to expand a factory, Grand Twins sold 8 million new shares, or 20 per cent of the company. A lower offer price would entice more investors to buy during the listing. Grand Twins' listing comes amid strikes and sometimes violent protests in Cambodia's garment industry as workers call for higher wages and better safety standards.
The industry, which garners more than $5 billion dollars in annual revenue and employs 6,00,000 people, is key to Cambodia's fast-growing economy and has attracted foreign investment as manufacturers seek cheaper alternatives to China. Grand Twins International, which employs about 5,600 workers, made a $8.79 million net profit in 2012. The company makes apparel for export mainly to countries in Europe and to United States.