Logo of Phnom Penh Post newspaper Phnom Penh Post - Dual stock exchange listing too costly



Dual stock exchange listing too costly

Dual stock exchange listing too costly

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

MOST VIEWED

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • 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

  • Hun Sen: Stay where you are, or else

    Prime Minister Hun Sen warned that the two-week lockdown of Phnom Penh and adjacent Kandal provincial town Takmao could be extended if people are not cooperative by staying home. “Now let me make this clear: stay in your home, village, and district and remain where

  • Businesses in capital told to get travel permit amid lockdown through One Window Service

    The Phnom Penh Municipal Administration has issued guidelines on how to get travel permission for priority groups during the lockdown of Phnom Penh, directing private institutions to apply through the municipality's One Window Service and limit their staff to a mere two per cent. In

  • 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

  • Ministry names types of business permitted amid lockdown

    The Ministry of Labour and Vocational Training singled out 11 types of business that are permitted to operate during the lockdown of Phnom Penh and Takmao town, which run through April 28. Those include (1) food-processing enterprises and slaughterhouses; (2) providers of public services such as firefighting, utility and