At the headquarters of the Cambodia Securities Exchange on the 25th floor of Canadia Tower, something seems to be missing.
Here, in Phnom Penh’s business heart, the sights typically associated with trading shares – gesticulating, shouting traders, the confusing hand signals, the buzz in the air as thoughts of money blanket the room – are nonexistent. …
Nearly two years after Cambodia’s landmark bourse launched in July 2011, the heady enthusiasm of the early days is competing with disillusion. Only one company is listed: the state-owned Phnom Penh Water Supply Authority. And, after an initial spike, its shares have plummeted back to its listing level. Attempts by others to make the leap onto the exchange have fallen hard. …
Plans for a Cambodian bourse materialised in 2008 between the Cambodian Ministry of Economy and Finance and the Korea Exchange.
A year later, both parties signed a joint venture to create the CSX. Under the agreement, Cambodia owns 55 per cent, while the rest goes to the Korea Exchange. While the market had its inauguration in July 2011, trading started in April 2012, after the water supply authority went public. …
The initial plan for the exchange was to begin with three state-owned companies, including Telecom Cambodia and Sihanoukville Autonomous Port.
Earlier this month, however, the director general of the Sihanoukville deep sea port, Lou Kim Chhun, said the company is still working with an underwriter, SBI Phnom Penh Securities, on its IPO. He didn’t have a time frame.
In March, Telecom Cambodia’s plan to join was derailed by poor finances and after an alleged embezzlement scandal at its top levels. …
State-owned fixed-line company Telecom Cambodia’s (TC) plan to join the Cambodia Securities Exchange (CSX) has been postponed indefinitely because of its poor financial performance, reports The Phnom Penh Post. The company will need to redesign its business plan to improve operations, said Sarak Khan, secretary of state at the Ministry of Post and Telecommunications. …
It will be worse still when the transit fee, a major source of revenue for TC, is deducted from this year, added Khan. According to Khan, revenue from transit fees account for about USD 17 million annually, more than 50 percent of TC’s total revenues. …
Securities and Exchange Commission of Cambodia (SECC) director general Ming Bankosal said any company that fails to make a net profit in the last three years of operation will be barred from joining the country’s bourse …
Sellers have dominated the Cambodia Securities Exchange for the last seven days of trading, and the downward trend for the single stock, Phnom Penh Water Supply Authority, was expected to continue into next week, experts said.
PPWSA closed down 4.6 per cent yesterday at 7,250 riel (US$1.79), according to the CSX.
There were 26,171 shares worth $46,942 traded, a volume increase of 53 per cent over Wednesday’s trades.
An SBI Royal Securities market report yesterday called the market increasingly “gloomy”, and said the price could fall into next week…
The Phnom Penh Water Supply Authority will launch its initial public offering (IPO) today on Cambodia’s bourse, and investors and securities officials said yesterday that they expected the company to make a strong start to trading…
…The Water Supply Authority is issuing 13 million shares, which accounts for a 15 percent share of the company. At %1.57 a share, the sale will generate more than $20 million
Han Kyung-tae, managing director of Tong Yang Securities, the firm underwriting the Water Authority’s IPO, said the share price would only be allowed to rise 50 percent above its initial price and no more than 10 percent below in order to prevent wild swings in the company’s value…
By Zsombor Peter and Hul Reaksmey
Investors, along with the next two companies expected to list on the Cambodia Securities Exchange, will watch carefully this morning the action on the country’s first initial public offering, nine months after the CSX officially opened.
After a book-building process that was 17 times over-subscribed, Phnom Penh Water Supply Authority shares will sell at about a penny below the maximum bidding price originally set by the Securities and Exchange Commission of Cambodia.
PPWSA was valued at 6,300 riel, or US$1.57, a share in late March, and 514 investors bought 474,143 shares during book-building.
Investor behaviour today would have a significant impact on the listing of Telecom Cambodiaand Sihanoukville Autonomous Port, the two state-owned companies also expected to list this year, Tong Yang Securities (Cambodia) managing director Han Kyung-tae said.
Tong Yang is the underwriter for PPWSA and Telecom Cambodia. …
As expected, the book-building phase for Phnom Penh Water Supply Authority’s initial public offering was significantly oversubscribed, the estimate being 17 times.
Interested investors had the opportunity to bid at a price no lower than 4,050 riel a share, and at a maximum of 6,350 riel a share when submitting their book-building form with either sole underwriter Tong Yang Securities (Cambodia) or the selling agent, ACLEDA Securities. Tong Yang has announced an offering price at 6,300 riel, just shy of the maximum bidding price.
Investors who subscribed during the book-building can determine if they were allocated shares to purchase by reviewing the list of successful and unsuccessful investors published by PPWSA, which can be viewed on PPWSA’s and ACELDA’s websites.
Admittedly, the consensus is that the process to date has been far from easy, could have been communicated more clearly, and that investors’ physical presence was required for payment. …
Anthony Galliano, P. 9
Phnom Penh Water Supply Authority aimed to raise US$20.4 million in a long-awaited initial public offering scheduled for mid-April, the company said yesterday during its first pitch to investors.
“We’ve targeted trading for the 18th of April,” said Han Kyung-tae, managing director of Tong Yang Securities (Cambodia), an underwriter for state-owned PPWSA and Telecom Cambodia.
Government officials, however, said trading could be pushed back again if investor demand for PPWSA’s IPO was higher than expected. PPWSA’s pitch, or “road show”, is expected to last two weeks as the company holds a number of information sessions for investors to prove its readiness to operate as a public company. …
May Kunmakara, P. 7
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…