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Roundup: 3rd listed firm expected to boost securities trading at Cambodian bourse

Xinhua, December 9, 2015 Adjust font size:

The state-run Phnom Penh Autonomous Port (PPAP) officially listed on the Cambodia Securities Exchange (CSX) on Wednesday, becoming the third firm to go public in the Southeast Asian nation.

Officials and analysts believed that the PPAP would help spur securities trading at the fledgling bourse.

The freshwater port became the third company to list on the bourse after state-owned Phnom Penh Water Supply Authority made its market debut in 2012 and Grand Twins International, one of the largest garment makers in Cambodia, listed in June last year.

The port sold more than 4.1 million shares, representing a 20-percent stake in the company, and raised 5.2 million U.S. dollars, according to its document. Shares were priced at 5,120 riel (or 1.26 U.S. dollars) apiece.

"We believe that our shares will appeal to retail investors because the PPAP adopted the preferential stock dividend policy which guarantees the annual dividend yield of minimum 5 percent for the next five years,"PPAP's director general Hei Bavy said.

Economy and Finance Minister Aun Pornmoniroth said the port's listing provided an additional choice of product for investors in the CSX.

"I hope that PPAP, which is the third listed company, will help foster market activities even further," he said.

"With this third listing and some other listed companies in the forthcoming years, we are moving towards self-development level by creating a cycle to attract investors to invest and companies to issue and to list in Cambodia security market,"the minister said.

CSX's Chief Executive Officer Hong Sok Hour said that currently, more than 7,000 individuals and companies have opened trading accounts at the CSX, but only a handful of them actively traded shares daily.

"Only a small number of the investors trade securities on the CSX every day because there are only a few listed companies. We hope that the PPAP's listing will help boost securities trading,"he told reporters.

According to Hong Sok Hour, at least two more companies are scheduled to list on the CSX next year, namely Phnom Penh Special Economic Zone and TY Fashion Cambodia garment factory.

So Phonnary, executive vice president of Acleda Bank, agreed that PPAP and some more companies expected to list on the CSX next year would help spur stock trading.

"The PPAP will provide a new option for investors," she said.

At the opening of PPAP securities trading on Wednesday, the port's share price rose to 5,200 riel (or 1.28 U.S. dollars), but declined to 5,140 riel (1.27 U.S. dollars) at the closing of the trading session. Its trading volume was 13,050 shares worth 16,730 U.S. dollars.

Launched in 2011, CSX is a joint venture between the Cambodian government holding 55 percent of the stakes and the Korean Exchange owning the remaining 45 percent. Enditem