Cambodian stockbrokers yesterday admitted to a disappointing level of investor interest in Grand Twins International’s (GTI) initial public offering.
Garment industry unrest, distrust in the private sector and a lack of liquidity in the market were all said to be discouraging investors from buying into the Taiwanese firm’s eight-million-share offering.
Sorn Sokna, CEO of Sonatra Securities, one of the brokers assigned to the IPO, said that so far just four clients had registered their interest with Sonatra in the GTI listing, which is slated to officially take place on May 29. …
It is almost two years to the day since Cambodia’s stock market launched in Phnom Penh in front of proud government officials, senior financiers and eager investors from across the region.
Initial expectations were that a total of three state-owned firms would be listed within six months of the launch.
None made the deadline.
The Cambodia Securities Exchange (CSX) first witnessed traders on its floor on April 18 last year, when Prime Minister Hun Sen rang the opening bell after the Phnom Penh Water Supply Authority (PPWSA) secured its listing on the exchange.
Now, the country’s bourse is virtually dormant. …
The CSX is 45 percent owned by Korea Exchange with the remaining 55 percent owned by the government.
While the opening of the bourse in 2011 featured both the chairman of Vietnam’s VinaCapital—a $1.8-billion investment fund based in Vietnam—and representatives of New York-based multinational Blackstone Group, the only sign of life at the CSX on Tuesday was a discarded black sweater hanging over the back of a chair. …
The only listed company on the CSX is the PPWSA, whose share price jumped 23 percent in the first week of trading—from 6,300 riel to 10,300 riel. But the stock quickly fell and on Tuesday closed at the same price it originally opened at last year.
Securities firms have touted everything from a local restaurant chain to a Taiwanese garment factory as possible candidates to list. But nothing has yet materialized, and Telecom Cambodia, the state owned firm that operates landlines in the country, still has no end date in sight for making its long-awaited initial public offering (IPO). …
The only other public entity to announce its intention to list is the Sihanoukville Autonomous Port, another state-owned firm.
The port’s director-general, Lou Kimchan, said Tuesday that plans were ongoing to list on the exchange. …
Suzuki Hiroshi, chief executive of the Business Research Institute for Cambodia, said the CSX’s tardiness in attracting more listings was partly due to the strict regulations in financial transparency and accounting that companies need to satisfy before listing.
Hul Reaksmey and Alex Willemyns
Phnom Penh Water Supply Authority (PPWSA) will allocate its first dividend to shareholders since listing on the bourse, on April 10.
According to an announcement by PPWSA, the annual dividend will be distributed in cash.
The dividend payout ratio is seven per cent, with a total dividend of 2.4 billion riel, and the dividend per share is 27.7 riel. …
The Taiwanese-owned garment company Grand Twins International (Cambodia) Plc says it intends to list on the Cambodia Securities Exchange (CSX) next month, in a boost for the Kingdom’s nascent stock market.
Phnom Penh Securities (PPS), an underwriter for Grand Twins International (GTI), said yesterday the company would offer 12 million shares at $0.25 a share. …
The government has said it plans to list two other state-owned enterprises, Telecom Cambodia and the Sihanoukville Autonomous Port, some time this year. Officials of both enterprises did not confirm that time frame yesterday.
PPS said that as of June last year, GTI’s total assets and total capital were about $31.6 million and $27.7 million, respectively. GTI is incorporated as a 100 per cent Taiwanese company. …
Phnom Penh Water Supply Authority’s price was unchanged at 6,200 riel yesterday, with 854 shares changing hands, according to data of the CSX.
GTI’s sales increased about 17 per cent, from $21.86 million to $25.56 million, between mid-2011 and mid-2012. …
May Kunmakara and Sarah Thust
Stock trading at the Cambodia Securities Exchange of the only publicly listed company, Phnom Penh Water Supply Authority, slightly fluctuated in terms of both trading volume and price in the last five trading days from Nov. 26 to Dec. 5.
On Nov. 26, one day before the official Water Festival break, the share’s price remained at KHR 6,200 (US$ 1.55), and kept the same level after the festival. But on Dec. 3, after the weekend, the price increased to KHR 6,300 (US$1.58) before it dropped to KHR 6,150 (US$1.54). On the last day, Dec. 5, price increased slightly to KHR 6,200, according to data available on the website of the Cambodia Securities Exchange. …
The price of the exchange’s sole listed company, PPWSA, remained very stable from Nov. 8-15 at KHR 6,200 (US$1.55), the price it arrived at on Oct. 30. Trading volumes over the period fluctuated between 4,501 and 38,951 shares. …
The price of Phnom Penh Water Supply Authority stock over the Sept. 27- Oct. 3 period was only KHR 6,200 (US$1.54), under the IPO price of KHR 6,300 (US$1.56), for nearly the whole week.
But on Oct. 3, the price rose to the IPO price again, while trading volumes varied widely from around 1,400 to 37,400 shares, according to data from the Cambodia Securities Exchange (CSX) website. …
The main players of the week were Golden Fortune Securities, Acleda Securities and Tong Yang Securities.
Sann Sethvitou, P. 35
The price of Phnom Penh Water Supply Authority stock over the Sept 12-19 period remained very stable, falling early on from KHR 6,350 (US $1.57) to KHR 6,300 (US $1.56) where it stayed.
Trading volumes over the five days varied from around 4200 to 13,600 shares, according to data from the Cambodia Securities Exchange (CSX) website. …
After the weekend the trading volume rose slightly to 5,065, creating KHR 31.9 million (US $7,906). On the next trading day, the volume doubled to 11,329 shares, which generated KHR 71.3 million (US $17,651). The executed volume continued rising on Sept. 19 to 12,750 shares, producing KHR 80.3 million (US $19,867).
The main players of the week were Golden Fortune Securities, Acleda Securities, Tong Yang Securities and Cana Securities.
Economics Today Staff
The price of Phnom Penh Water Supply Authority stock over the Sept 6-12 period fluctuated between KHR 6,350 (US $1.57 and KHR 6,300 (US $1.55). The price on Sept. 6, KHR 6,350 fell to KHR 6,300 (US $1.58) on Sept 7 and remained there until climbing to KHR 6,350 again on Sept 12, according to data from the Cambodia Securities Exchange (CSX) website.
With the price at KHR 6,350 on Sept 6, a trading volume of 2,898 share generated about KHR 18.4 million (US $4,550). Then, on Sept. 7, volume climbed dramatically to 21,971 shares, generating about KHR 138.4 million (US $34,230). …
The main players were Tong Yang Securities, Cana Securities, Golden Fortune Securities, Phnom Penh Securities and Acleda Securities. According to a report from Phnom Penh Securities, local investors showed their interest in buying when the price was at the IPO price, KHR 6,300.
Economics Today Staff
The price of Phnom Penh Water Supply Authority stock over the Sept. 6-12 period fluctuated between KHR 6,350 (US$1.57) and KHR 6,300 (US$1.55).
The price on Sept. 6, KHR 6,350, fell to KHR 6,300 (US$1.58) on Sept. 7 and remained there until climbing to KHR 6,350 again on Sept. 12, according to data from the Cambodia Securities Exchange (CSX) website. …
The main players were Tong Yang Securities, Cana Securities, Golden Fortune Securities, Phnom Penh Securities and Acleda Securities.
According to a report from Phnom Penh Securities, local investors showed their interest in buying when the price was at the IPO price, KHR 6,300.
Sann Sethvitou, P. 35
After sudden increase in price to KHR 6, 600 (US$ 1.62) on July 25, over the next week the price rose for a couple of days before eventually changing direction, falling to 6,400 (US$1.57) on August 1. Trading volumes were larger compared to the week before.
The price of Phnom Penh Water Supply Authority stock, at KHR 6,600 (US$ 1.62) on July 26, increased to KHR 6,800 (US$1.67) on July 27. But then it started to head south, reaching KHR 6,700 (US$1.76) on July 30, KHR 6,600 (US$!.62) on July 31, and KHR 6,400 (US$1.57) on August 1, according to data to data from the Cambodia Exchange (CSX) website.
Phnom Penh Securities explained that this price fluctuation was result of speculators selling the stock that they had bought at the lower price a during the week. …
Pressure from the sellers pushed the price back down.
While the price fluctuated somewhat, trading volumes did as well. On July 26, around 44,000 shares traded, generating about KHR 293 million (US$72,000). The next day, volume shot up to around 63,000 generating about KHR 428 million (US$105,000). One day later, the amount of stock traded dropped to around 43,000 shares, resulting in around KHR 292 million (US$ 72,000). Then, on July 31, it continues to decrease to around 27,000 shares, generating only around KHR 178 million (US$ 44,000). The last day of the week, the volume increased to 39,000 shares, which created KHR 251 million (US$ 62,000).
The week’s main players were Golden Fortune Securities, who was the most active participant over the whole week. ACLEDA Securities and Sonatra Securities were active in the early part of the week.
The price of Phnom Penh Water Supply Authority stock from the period of August 2 to 8 remained very stable at KHR6,500 for most of the week after a slight increase from KHR6,400 (US$1.57) to KHR6,500 (US$1.6) on August 3. Trading volumes overall were lower compared to the previous week.
After the increase to KHR6,500, the prices stayed at that level until August 8, according to data from the Cambodia Securities Exchange (CSX) website. …
While the price remained fairly constant, the trading volume decreased in the second day but went up after that almost every day until the end of the week. …
Due to the low trading volumes over the past month, the Securities and Exchange Commission of Cambodia and the CSX are working on adding four more trading sessions, which will mean there will be six per day. This move is expected to increase trading activity on the young exchange. …
The main players of the week were Golden Fortune Securities, Acleda Securities and Cana Securities.
This week the price of Phnom Penh Water Supply Authority Stock dropped continually from KHR 7,000 (US$1.72) on June 7 until it stopped and stayed at KHR 6,8oo (US$1.67) from June 11 to June 13.
On June 13, the stock’s price at the market’s opening and close was KHR 6,8oo, with a volume of 18,299 shares. That was lower than the trading volume on June 12 of 25,900 shares.
Sonatra Securities was the biggest seller while Acleda Securities was the major buyer. Local investors have mostly sold over the last several days, eager to exit the market because of the low share price, according to the Phnom Penh Securities daily report. Local investors’ eagerness to unload their stock would normally put pressure on the price since supply began to outpace demand. However, the PPWSA price remained relatively unchanged. This phenomenon is due to the sellers’ willingness to sell at a low of KHR 6,8oo, a level which buyers could apparently live with. Therefore, after the downward drift, the price stabilized.
The stock price is likely to remain pretty much where it is for another month and fluctuations like were seen in the early weeks of the IPO are unlikely. …
Sann Sethvithou, P. 16
Tong Yang Securities (Cambodia) and ACLEDA Securities yesterday signed a memorandum of understanding to partner the services they offer to the Kingdom’s budding financial markets.
To expand their footprint in the market, the companies aimed to provide a combination of advisory and underwriting services for companies planning to list on the CSX, officials said yesterday.
ACLEDA Bank president and chief executive In Channy pointed to Tong Yang’s experience with its home South Korean markets as a main reason for the partnership, while Tong Yang president and chief executive You Joon Ryeol noted ACLEDA’s reach within the Kingdom…
Stock exchange officials were conducting a five-day workshop on the IT system that will allow trading, Securities and Exchange Commission of Cambodia director-general Ming Bankosal said yesterday. The workshop, held in conjunction with the Cambodia Securities Exchange, would also seek feedback on the system’s functionality as well as providing training, he said. The workshop, slated to run until Friday, is being attended primarily by representatives of firms that are acting as brokers, dealers, or underwriters on the exchange.
(May Kunmakara, pg. 7)
Several securities firms are opening accounts, even as the first listing on the Cambodia Securities Exchange are not expected until later this year, company officials said yesterday. The CSX was launched on July 11 without any listed firms, though state-owned Telecom Cambodia, Phnom Penh Water Supply Authority and Sihanoukville Autonomous Port are expected to trade later this year by listing via Initial Public Offerings. Sonatra Securities Operations Officer Sokhna Rachana said yesterday the firm had opened accounts for both foreigners and locals.
(By May Kunmakara, pg. 8)