Logo of Phnom Penh Post newspaper Phnom Penh Post - CSX reviews first application for Growth Board IPO

CSX reviews first application for Growth Board IPO

Content image - Phnom Penh Post
The Cambodia Securities Exchange (CSX). Heng Chivoan

CSX reviews first application for Growth Board IPO

The Cambodia Securities Exchange (CSX) is currently going over its first-ever initial public offering (IPO) eligibility review application for a company to list on its Growth Board since the secondary board was launched in 2015, its vice-chairman Ha Jong-weon told The Post on December 14.

A first listing will enlighten the Kingdom’s small and medium-sized enterprises (SMEs) to new possibilities of going public and raising funds on the capital market, he said.

“We will give them the approval notification within one month if the documents and information are completed,” Ha said, declining to provide further details before the Securities and Exchange Commission of Cambodia (SECC) had given the green light for the IPO.

He voiced confidence that the IPO would be the catalyst to spark a listing trend among leading qualified SMEs in the Kingdom.

“It also means SMEs [will now be] able to collect public funds and have their stocks traded [on] the market like big corporations do.

“Investors . . . can [now] invest in small-cap stocks on top of big-cap stocks on the main board in the CSX. It will be another historical step forward [for] capital market development in Cambodia,” Ha said.

The CSX has struggled to attract SMEs since the launch of its Growth Board in late 2015. According to SECC regulations, companies are required to have a minimum of $500,000 in operating capital to list, as compared to the $7.5 million required on the main board.

Companies that list on the platform are also required to release one year of audited financial results, whereas two years are required for bigger companies.

Additionally, the audit results must show a positive net profit or positive operating cash flow with gross profit margin of at least 10 per cent.

SECC vice-president Sok Dara told The Post recently that two SMEs were on track to list on the CSX’s Growth Board by the end of this year.

There are currently 13 listed firms in the Kingdom – seven stock-listed and six corporate bond-listed. The 13 companies have raised a combined $253 million and the stock index increased more than 57 per cent last year over 2018, CSX data show.

In the first nine months of this year, two companies listed stocks and three listed bonds. The five firms have raised a combined $92 million, the data show.

MOST VIEWED

  • Phnom Penh curfew starts today

    A two-week curfew from 8pm to 5am starts today in Phnom Penh, a day after a sub-decree detailing administrative measures to contain Covid-19 was issued by Prime Minister Hun Sen. “Travelling in Phnom Penh is temporally banned between 8pm and 5am,” said Phnom Penh governor

  • Covid in Kingdom hits ‘critical point’

    The Covid-19 situation in Cambodia has reached a critical point, the World Health Organisation (WHO) in Cambodia warned, as cases surge with two more deaths and 265 infections reported over the weekend. On March 28 alone, the Ministry of Health recorded 86 Covid-19 cases linked to the February 20

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Time to Rise by rapper, chapei legend is viral hit with ancient-modern mix

    Kong Nay is known internationally as the master of the chapei dang veng, a traditional Cambodian instrument resembling a long-necked lute or guitar with two nylon strings that he was already playing professionally by the age of 15. Nay is sometimes referred to as the Cambodian