U.D.A Import-Export Public Company or U.D.A Farm announced Oct 27 that it has submitted initial public offering (IPO) documents to the Lao Securities Commission Office (LSCO), signalling its intention to make 25 million shares available to the public through the Lao Securities Exchange (LSX).
The announcement was made in attendance of the Chief Executive Officer (CEO) of the LSX, Mr. Vankham Voravong in Vientiane Capital along with Deputy Director General of the LSCO Mr. Khamkeo Visisombath, business people, and representatives of relevant sectors.
U.D.A Farm will use the funds raised through the LSX to produce another 2,000 sows in its farm to ensure that there is a sufficient supply of pork and baby pigs for domestic markets.
Some funds will be used for debt payment to the Agriculture Promotion Bank and as working capital of the company.
Financial advisors said food consumption is increasing due to constant economic growth in the country, partly driven by investment from both domestic and foreign investors.
U.D.A Farm President Mr. Nitsavanh Luangkhotpravongvienkham told a press conference that the company had submitted an IPO application to the LSCO to issue 25 million shares at 2,000 kip per share.
The company currently has 100 billion kip of paid-up capital. Once registered on the LSX, its paid-up capital is expected to reach 150 billion kip.
The farm currently produces around 8,000 baby pigs per month and about half of them are sent to Luang Prabang Province. With the funds raised through the LSX, the company will be able to produce around 12,000 baby pigs monthly.
“Besides baby pig production, we also give importance to environmental management. We use waste from those pigs to produce biogas, which is then used as fuel for electricity generation in the company. This aims to reduce spending on electricity in the company,” saidU.D.A Farm Vice President Mrs Channoune Sipaseuth.
CEO of APM (LAO) Securities Co., Ltd. Mr. Somphop Sakpunpanom, who is a financial advisor to the U.D.A Import-Export Public Company, said that the company recorded revenue of 52.97 billion kip (over US$6.49 million) and a net profit of 868 million kip (over US$106,000) last year.
In 2014, the company recorded revenues at 39.8 billion kip and a net profit of 1.1 billion kip. Meanwhile 2013 witnessed the company fetching 26.4 billion kip in revenue and a deficit of 708 million kip.
U.D.A Farm appointed APM (LAO) as its financial consultant to facilitate its structural improvement and registration with the LSX in July 2015.
The company, located in Mai village (KM46) on National Road No 13 North, Phonhong district, Vientiane Province, was established in 2010.
U.D.A Farm Moves One Step Closer to Listing on LSX