Interested, but not yet committed

[geovalin]

Interested, but not yet committed

CAMBODIA From the finance to the education sector, the interest from companies looking to list on Cambodia’s nascent stock exchange is on the rise, a CSX official said yesterday, after a meeting with some of the Kingdom’s largest firms.

Some 30 companies, the CSX say, are eyeing a public offering, ranging from the Foreign Trade Bank to Bonna Reality Group and even the Frangipani Villa Hotel joined the meeting held at the exchange’s headquarters to gain greater insights into listing requirements.

“Some tell me they have already talked about it, and are in negotiations with shareholders,” said Sok Vanny, acting director of Listing and Disclosure for the CSX, declining to name specific companies.

And although Vanny conceded there was no definite confirmation from attendees that they would list, she was confident the meeting had been fruitful, with the CSX expecting at least one more IPO this year.

“Now we are working with one in the garment industry, [and we are] set to receive two more applications this year,” she said.

Although, for the attendees the Post spoke to yesterday, an IPO was still a long way off.

Founder of education service provider the American Intercon Institute and School, Mengly J Quach, who sent representatives along to the meeting said his company had no immediate plans to list.

“We are looking in the future, but right now we are just enquiring,” he said.

Company CEO and president Mong Reththy of Cambodian agricultural giant, Mong Reththy Group, whose company also went to the CSX information session, said given the requirements to list, his firm would not be floating on the exchange any time soon.

“As you know, in order to list, we need time because everything has to be clean – now is not the right time,’ he said.

And while MFI Sathapana is looking at a potential IPO one day, CEO Bun Mony said it was a proposition that still needed to be adopted by the company’s shareholders.

“We are not thinking about it just yet, because it all depends on our shareholders,” he said.

Since launching in 2011, the CSX has been slow to attract companies to list.

Last month garment manufacturer Grand Twins International (GTI) become just the second company to list on the CSX, after the state-owned Phnom Penh Water

Supply Authority (PPWSA) in April 2012.

After listing on June 16 at 9,700 riel ($2.41), GTI’s price has dipped in its first six weeks trading. The garment manufacturer’s price closed at 8,660 riel ($2.14) at the end of trading yesterday.

http://www.phnompenhpost.com/business/interested-not-yet-committed