Logo of Souvanny Home Center Public Company

Singkham

(KPL) The leading construction material supplier “Souvanny Home Center Public Company” (SVN) is ready to be listed on the Lao Securities Exchange (LSX) after receiving better than expected responses from share buyers.

Souvanny sold all 25 million shares at the par value of 3,100 kip per share on 30 November, only the first of the three scheduled purchase days.

Such success guarantees that Souvanny will be the fifth company listed on the LSX following Banque Pour le Commerce Exterieur Lao Public (BCEL), EDL-Generation Public Company company (EDL-Gen), Lao World Public Company and Petroleum Trading Lao Public Company.  It expects to be listed on 11 December.

APM (LAO) Securities Co., Ltd, the financial advisor of SVN, has revealed that investors have confidence in the capability the company has shown for more than 27 years, and that the company is ready to be listed on the LSX.

Director General of the Lanexang Securities Public Company, Mr Nalinh Silavongsith, who is the lead-underwriter of SVN, said the company previously planned to offer 25 million shares for the initial public offering (IPO) with the par value of 3,100 kip per share on 30 November, 1 and 3 December 2015, but all of its shares sold out during the first day.

“The launching of the IPO of the company on November 30 was extremely successful. The response from investors was very positive. This means that investors trusted the fundamental business elements and capability of business operations of the company,” said Mr Nalinh.

“The main reason behind the popularity of SVN’s IPO launch is that the company has been operating for over 27 years. Its business growth parallels the economic growth of the country. It has an experienced management team and business allies from Thailand,” said CEO of APM (LAO), Mr Somphob Sakpunpanom.

Vice Chairman and CEO of Souvanny Home Center Public Company Mr Waddana Soukhabandith said that the money raised at the IPO launch will be used to establish three additional branches in the country by 2017.

Souvanny will build the first branch on 450 Year Road in Vientiane Capital. The second one will be builit in Pakse district of Champassak Province and the third branch will be built in Pakxan district of Borikhamxay Province.

With its headquarters located in Phontong, Souvanny currently operates three branches, all in Vientiane Capital, including one in Thongkhankham village, and one each in the villages of Sikhai and Thongtoum.

Souvanny offers seven categories of products including tiles and construction material, roofing and decorations, paints and equipment, electrical and pipe equipment, sanitary and kitchen ware, elevators and escalators, and furniture.

Souvanny has recorded the following business achievements:  In 2012, it recorded an income of 230.45 billion kip, and a net profit of 10.64 billion kip. In 2013, the income of the company was valued at 264.37 billion kip and its net profit was 14.18 billion kip. In 2014, its income was recorded at 311.28 billion kip and its net profit was 21.33 billion kip.

In the first half of this year, Souvanny recorded an income of 167.84 billion kip and a net profit of 12.18 billion kip.

KPL