NGO ACLEDA Financial Trust (AFT) has entered into an agreement with its local public listed parent company ACLEDA Bank Plc (ABC) on a five-year strategic plan to buy shares of the bank on Cambodia Securities Exchange (CSX) from 2022-2026, in a move to stabilise the floating share of the lender on the bourse, according to ABC.
ABC issued a notification to the CSX on February 4 informing all stakeholders of the decision, commenting that it was made by AFT’s board of trustees and regulators.
ABC senior executive vice-president Mar Amara affirmed to The Post on February 9 that AFT would invest in the bank, by purchasing its shares on the CSX based on the five-year plan.
“By and large, we believe and expect that this will contribute to more active participation of investors in the CSX, growing liquidity in the market, and accelerated development of the securities market in Cambodia,”she said.
CSX Market Operations Department director Kim Sophanita noted that AFT is currently the largest shareholder of ABC.
“AFT’s investment plan shows that it has confidence in long-term investment with ACLEDA Bank.
“Moreover, I believe that this plan will help to correct the current market price and adjust the current mismatch of supply and demand of ABC shares in the market as well as to regain trust from investors who fear a continued price drop due to the upcoming release of the remaining shares held by ACLEDA staff under the ASA entity [ASA Plc].
“However to show their commitment and gain trust from public investors in its plan, AFT should make public the details of their investment plans, including specific purposes, target buy price ranges, a more detailed timeline, sources of funds, and so on,” she said.
ABC shares rose 1,200 riel ($0.30) or 9.92 per cent to close at 13,300 riel on February 9, with 38,051 shares traded worth 506.08 million riel. On Friday, February 4, shares had remained flat at 10,300 riel, with 16,947 shares traded valued at 174.62 million riel.