The Cambodian Stock Exchange (CSX) - why is it not working ?

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Phnom Poon
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by Phnom Poon » Wed Nov 06, 2019 10:17 pm

CEOCambodiaNews wrote:
Thu Oct 10, 2019 7:48 pm
Many companies are currently looking to list on the exchange to benefit from the 50 per cent tax deduction on net profit
ok, enough of this 'capitalism', aka financial feudalism
where's this revolution?


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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by CEOCambodiaNews » Wed May 13, 2020 8:03 am

Long read.
Cambodia's stock market marks a milestone amid crisis
Local bank's IPO is set to triple total market cap despite COVID-19 impact
SHAUN TURTON, contributing writer
May 12, 2020 15:06 JST

PHNOM PENH -- After languishing for years with fewer than half a dozen listed companies, the Cambodia Securities Exchange is set for a "game changing" IPO by one of the country's largest domestic banks.

Acleda, Cambodia's biggest lender by gross loan portfolio, will become the sixth company to trade equity on the small bourse when it lists in May or early June, and only the third non state-owned firm.

The bank -- which has decided to push ahead with its listing despite the COVID-19 pandemic -- will be the exchange's first financial institution and is set to triple the CSX's market capitalization, which hovered around $600 million in April.

"It is a really big deal. We are thinking it will be a game changer in the Cambodian securities market," Jong Weon Ha, vice-chairman and COO of CSX, told the Nikkei Asian Review at the CSX building in Phnom Penh.

"We need more equity. Many companies do not list on our exchange, so this is a big problem. This is a big commercial bank in Cambodia, it's a big event. We will receive a lot of focus from the public and the foreign investors."

The CSX was launched in 2011 as a joint venture split 55/45 between Cambodia's Ministry of Economy and Finance and the Korea Exchange. The first company to list, the Phnom Penh Water Supply Authority, held its IPO in 2012, but the surrounding buzz soon fizzled, and after an initial surge, the government-owned company's stock fell below its initial offering price, where it remains.

Since then bourse has added just four companies: the local subsidiary of a Taiwan garment manufacturer, the Phnom Penh Special Economic Zone, and the two government-owned operators of the ports in Phnom Penh and Sihanoukville.

In recent years, it has also listed corporate bonds for six companies, including microcredit providers and a transport firm. The most recent, and biggest, was earlier this month, when PRASAC Microfinance Institution raised 127.2 billion riel ($31.8 million) from three investors -- Malaysia's Hong Leong Bank, Prudential Insurance and Shinhan Bank.

But attracting companies and building liquidity in the capital market has remained a challenge. In last year's fourth quarter, the CSX's daily average trading value was $157,045. By comparison, the Ho Chi Minh Stock Exchange -- which has 381 companies -- averaged 3.93 trillion Vietnamese dong ($169.27 million) per day in the first six months of 2019.

Cambodia's northern neighbor Laos, meanwhile, has 11 listed companies with a market capitalization of some $922 million.

A barrier for adding new local companies has been reporting requirements. In Cambodia's opaque business environment, many family-owned businesses are unable, and some unwilling, to meet the transparency requirements needed to list.
Full article: ... mid-crisis
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