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Exchange to Add Three More Firms, Open Board for SMEs

Pav Suy / Khmer Times Share:
Phnom Penh Autonomous Port, above, is one of three companies expected to list on the bourse by the end of this year.Photo: Chhor Sokunthea/ World Bank

PHNOM PENH (Khmer Times) – The Securities and Exchange Commission of Cambodia (SECC) confirmed Friday that three more companies will list on the securities market by the end of this year. They are: Phnom Penh Special Economic Zone, Phnom Penh Autonomous Port and Taiwanese-owned TY Fashion (Cambodia) Ltd.
 
Only two companies have listed on the exchange since it opened on April 18, 2012. Phnom Penh Water Supply Authority listed that year and garment maker Grand Twins International (GTI) listed in 2014. 

The three new companies are expected to be officially listed at the end of this year. Their applications are awaiting official approval from the SECC. 

“We hope that we will push the three companies to be officially listed at the end of this year, or at least two will be listed. They have already made an official request to the SECC. Now, we are in the process of examining [the applications],” Sok Dara, deputy director-general of the SECC said during a meeting to strengthen closer cooperation between the SECC and the media.

Widening Choices

“The two current companies provide narrow choices to [stock] purchasers. They don’t have other choices. If the choice is wider and one company is not profitable, they can move to other companies,” Mr. Dara added.

On August 18, the Cambodia Securities Exchange (CSX) granted approval in principle on listing eligibility to Phnom Penh SEZ Plc, CSX said.

The SEZ had said previously that its application process was 95 percent complete and regulators had already toured its facilities. 

Roughly 10 companies have expressed interest to the SECC about listing on the exchange. Some have prepared the paperwork for applications and the SECC has said it will assist them if necessary.

Mr. Dara said some of the companies had asked for assistance in clarifying legal and regulatory conditions. They also asked about the process of applying and listing, he added.
 
Executives at Phnom Penh Autonomous Port and TY Fashion (Cambodia) Ltd were not immediately available for comment yesterday. TY Fashion is located on National Road 51 in Kandal province. It employs more than 6,000 staff and supplies international brands and retailors including H&M.
 
“Growth Board”

Mr. Dara said that the SECC has finished amending a number of provisions that would allow small-to medium-sized enterprises (SMEs) to list, and that the CSX would  be divided into a main board and a “growth board” for smaller firms. 

He said the addition of a “growth board” would make it possible for SMEs to list on the CSX. 

The growth board will offer a host of benefits to SMEs, Mr. Dara said. “They can get capital through securities. If they can get into securities market, they can increase confidence in their company with their partners because [listing] requires conditions to ensure confidence, such as transparent leadership, structure, business plans and accurate financial reports,” he explained, adding that the new board would also be regionally competitive.

With the new amendment, Mr. Dara said listing requirements would be more relaxed. Only a one-year financial report is required and SMEs can list as long as they are profitable, he said. 
 

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