In a bid to lure more small and medium-sized enterprises (SMEs) into the local stock market, Cambodia Securities Exchange (CSX) yesterday entered into an agreement with CEO Institute, which will train entrepreneurs on raising capital by listing their companies in the local bourse.
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It is the second agreement this month that CSX signs with a human resource development agency, after entering into a similar partnership with Successco last week.
Hong Sok Hour, CSX’s CEO, said CEO Institute’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.
“This agreement is part of our strategy to expand awareness of the possibility to raise capital by listing in the CSX,” he said.
“CSX will support the training through consulting and by providing trainers to CEO institute.”
Om Seng Bora, CEO Institute’s chairman, said his company’s goal is to boost the local economy by helping entrepreneurs transform their family-owned business into professional enterprises.
“We will provide training on the securities market and good governance to our 570 members,” he said, adding that the collaboration with CSX will help CEO Institute’s members expand their operations.
With more than 500,000 SMEs operating throughout the country, many of them struggling to access capital, Mr Sok Hour said these 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.