Dear Editor,

Finally, the first initial public offering is on! But it causes a dilemma for small investors who have never participated in a share float.

How are people who don’t know what EPS, P/E ratio, NTA, balance sheet, profit-and- loss account or acid test mean expected to decide the price of shares they want to invest in?

The book-building method of subscribing to Phnom Penh Water Supply shares is too complicated for first-time investors.

Although the price range is fixed at between 4050 and 6050 riels a share, those who are unable to analyse the prospectus or other documents will have problems nominating a price that is fair and reasonable.

As a small investor who waited more than two years for Cambodia’s first IPO, I wonder why the authorities and the underwriter of the float didn’t fix the offer price to make the whole process easier for everyone.

Book-building is a fair method of deciding the price of IPOs, but it’s more suited to a mature market or to institutional investors who know how to analyse the value of shares.

Cambodians have waited a long time for the first IPO, and we don’t mind waiting a bit longer to ensure that we do it the right way.

Michael Ho  

Phnom Penh

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