Dear Editor,

According to a report carried in your paper, companies listing on the Cambodia Stock Exchange are being offered the opportunity to list on the Korea Exchange (KRX) as well.

While most bosses recognise the advantages of listing their companies, the global financial crisis caused many of them to adopt a "wait and see" approach.

The dual listing offer will, of course, encourage more companies to list. But the Cambodia Stock Exchange needs more well-managed companies to list when it opens its doors towards the end of the year. According to the report, in the initial stages, only three government-owned companies - mainly utility companies - will list, followed by private companies.

This is not a good strategy. Utility companies will not generate enough interest in the exchange because they appeal mainly to pension funds and long-term investors.

The Cambodia Stock Exchange, the Security Commission and the relevant government authorities should try hard to persuade private companies to be in the first batch that lists on the exchange.

The cost of listing on the KRX also has to be taken into consideration. The cost of listing stands at US$500,000 - a heavy burden for most of the private companies. So a dual listing is a good offer, but it might be too costly for local companies to go for it.

Michael Ho

Phnom Penh