The Cambodia Securities Exchange (CSX) entered yesterday into an agreement with human capital development agency Successco to train small and medium-sized enterprises (SMEs) on raising capital by becoming publicly-listed companies.
Under the new memorandum of understanding (MoU), Successco’s members will receive training on stock trading, with Cambodia’s market regulator hoping this will prompt more small enterprises to join the nascent local stock market.
“We signed the MoU with Successco as they have a lot of members who are mostly young entrepreneur with great ideas,” said Hong Sok Hour, CSX’s CEO.
“Now we will work directly with SMEs to train them on topics related to the stock market. We believe this is a good way of luring more companies into the CSX.”
With more than 500,000 SMEs operating throughout the country, many of them struggling to access capital, Mr Sok Hour said this type of companies have become a target for CSX.
“We need to support these enterprises. They are mostly started by young people with creative ideas. Our goal is to support them so that they can reach a level in which they are competitive in the region. We want to strengthen our entrepreneurs,” he said.
In 2015, the CSX launched a new trading platform with reduced requirements that aimed to attract SMEs. Dubbed “Growth Board”, it requires SMEs to have a minimum operating capital of $500,000, down from the $10 million for the main board. The companies are required to release only one year of audited financial results.
Successco, a personal and professional development company that operates regionally, has 50 local members, in addition to another 50 members that are based in South Korea, all of whom will be trained in stock market matters as per the new agreement.
Sim Dara, director of Successco, said the collaboration with CSX will enable his company to develop training courses that target securities trading skills as well as human resource management and financing.
“The big challenge facing businesses is a lack of skills when it comes to raising capital and investing. Many businesses have good ideas but cannot grow because they don’t have the necessary capital,” Mr Dara said, adding that the stock market is the only place where businesses can find the funds they need to expand into regionally and internationally recognised brands.
“Market and capital growth strategies must go hand-in-hand, and there is only one place where business can find that capital: the stock market.”
He said the agreement will encourage more local companies to list in the CSX and will help the small local bourse expand: “In the next three to five years, I believe about 20 companies will list in the CSX.”
There are now five companies listed in CSX’s Growth Board, with one more company scheduled to join in the near future, according to Mr Hok Sour.