Is Cambodia Airways Going To List On The NASDAQ?
Cambodia Airways has filed and set terms on 30th May 2024 with the SEC (Securities Exchange Commission) for its intentions to list on the US NASDAQ and is seeking to raise several million US Dollars in an initial public offering (IPO).
The airline is a Cambodia-based company and the SEC filing by Cambodia Airways indicates it is offering 1.5 million Class A ordinary shares under the symbol CAKR at a price range of USD $4-5 which would generate net proceeds of about USD $4.6 million from IPO. One report suggests the airline will use the proceeds for aircraft leasing, new air routes development and working capital purposes.
The SEC filing says “The offering price of our Class A ordinary shares in this offering is expected to be between US$4.00 and US$5.00 per share. Prior to this offering, there has been no public market for our Class A ordinary shares”, adding “There is no guarantee or assurance that our Class A ordinary shares will be approved for listing on the Nasdaq Capital Market or another national exchange.”
Cambodia Airways - Routes & Passenger Numbers
Cambodia Airways primarily operates out of Phnom Penh offering commercial airline services to China and Southeast Asia as well as limited limited air cargo services with its fleet of six Airbus aircraft (Airbus A319 and A320 series). The airline was awarded its Air Operator's Certificate (AOC) by Cambodia's Secretariat of State Civil Aviation (SSCA) in mid-2018.
The filing confirmed by the end of 2023, the Cambodian airlines operated seven flight routes consisting of three regional routes and four international routes." The destinations were; Bangkok (Thailand), Singapore, Ho Chi Minh City (Vietnam), Macau (SAR of China), Koror (Palau), Chengdu (China), Beijing (China), and Shenzhen (China).
The full-service airline booked USD $33 million in revenue for the 12 months ending December 31, 2023. In addition, the filing states, “In 2023 and 2022 respectively, the Operating Subsidiary carried 151,807 and 22,636 passengers and had passenger revenue of approximately US$20.25 million and $20.39 million.”
Cambodia Airways Growth Strategy
In the SEC filing, the company outlined its strategy which would include expansion to “major aviation hubs in the Asia-Pacific region by 2025, such as Hong Kong, Ho Chi Minh City, Seoul, Tokyo, and others, recognizing their significance as origins for travel to Cambodia and gateways to global destinations.”
They also outline their fleet growth, stating "We plan to acquire new long-range narrow-body aircraft like the A320neo and A321LR (“long range”) to enable us to offer direct flights of up to 8-10 hours. Between 2026 and 2029, we plan to introduce two new passenger aircraft each year to expand our direct flight routes to the Middle East, North Asia and Australia.
If successful, by our accounts they would be the first Cambodian company listed on the NASDAQ.