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Logo of Phnom Penh Post newspaper Phnom Penh Post - PPSEZ holds bookbuild today to set share price

The Phnom Penh Special Economic Zone is due to kick off its IPO bookbuilding session today.
The Phnom Penh Special Economic Zone is due to kick off its IPO bookbuilding session today. Heng Chivoan

PPSEZ holds bookbuild today to set share price

The Phnom Penh Special Economic Zone is set today to kick off a five-day bookbuilding session that will determine a share price for its initial public offering on the Cambodia Securities Exchange (CSX), expected sometime in May.

The company, which operates a 357-hectare industrial park on the outskirts of the Cambodian capital, is preparing to offer 11.6 million new shares – about 20 per cent of its enlarged issued share – to raise up to $11.6 million for debt repayment and the development of a new special economic zone in Poipet near the Thai border.

The price band of the bookbuild will range from $0.70 to $1 per share.

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Don Rennie's picture

Dear Post Staff,

The Cambodia Stock Exchange (CSX) is laughable and child's play by any standard. There are three issues to play with. Most children can play with three small toys. Playing with three stocks on one exchange is no different.

Additionally, the currently listed companies on the CSX trade at share values similar to a penny stock or Pink Sheet listing in America. Share price movements are not significant on the CSX. The PPSEZ's stock price will be no different. Access to capital markets are the only real motivation for listing on the CSX.

The NYSE and London Exchanges have been around for more than 200 years. The Tokyo and Hong Kong Exchanges have been around for more than 125 years. The Singapore and Australian Exchanges have been around for 15 years. All of these exchanges have many hundreds or thousands of listed companies.

The CSX has been around for a few years. Why would ANYONE want to dabble in the CSX when only three companies (PPSEZ will be number four) are now listed? Answer: Only the unsophisticated investor and children at play would want to do so.

DR

chettra's picture

Dear DR,

Do you suggest to shut CSX down? There must be a starting point.

Don Rennie's picture

Dear Chettra,

There were five stock/securities issues initially traded when the NYSE began trading operations more than 220 years ago.

By comparison, the CSX began trading with ONE issue; not a lot of investment choices for any sophisticated investor in the beginning. In my view, this was irrational meaning neither logical nor reasonable. Someone else might say stupid.

It is not a question of shutting down the CSX. The CSX is child's play by any reasonable standard. Cambodia wants to grow up.

Unfortunately, Cambodia has major difficulty growing up. For example, just look at the current government starting with the PM and his verified corruption. He sets a weak example for Khmer people to follow. He is not liked by most world leaders. The majority of Cambodian voters do not like him. Likability is important for any sovereign leader.

Many Khmer children masquerade as Khmer adults in Cambodia, because they have grown older than the age of majority set as 18. Do you take away toys from children? Not in my view and judgment, if the toys will not cause harm or be dangerous to the child.

Let the CSX live. The listed stocks are penny stocks trading at less than one USD, at best. The CSX is child's play and laughable on the world investment stage.

DR

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