At least four small- and medium-sized enterprises (SME) are working with the Cambodia Securities Exchange (CSX) to list on the local bourse to raise funds and expand operations, according to CSX CEO Hong Sok Hour.
Sok Hour told The Post that these companies are from the construction and tech-related domains. “We’ve been working with them, explaining some of the listing processes and what they should do to prepare … one of the four – from the construction sector – will be ready before year’s end.
“They’ve prepared well for the listing, in terms of corporate governance and internal procurement. They’ll be listing on the Growth Board,” he confirmed, adding that the other three firms will need more time to prepare.
“I encourage local SMEs to pursue financing by listing on the market, everyone well understands that many businesses have been facing financial difficulties in light of the Covid-19 pandemic.
“The addition of more companies to the bourse – those seeking funds for business expansions or sustainability – will highlight the capital market as a key source of funds,” Sok Hour said.
The CSX has struggled to attract businesses to the SME-oriented Growth Board since its launch in late 2015. The Securities Exchange Regulator of Cambodia (SERC) requires firms to have shareholders’ equity of at least $500,000 to list on the secondary board, compared to $7.5 million on the primary Main Board.
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Author: May Kunmakara
Source: The Phnom Penh Post
Publication: 08 May 2023