[PHNOM PENH POST]
FOREIGN-OWNED garment factories are showing particularly strong interest
in listing on the planned Cambodia Securities Exchange, according to
Phnom Penh Securities Director Kuy Vat.
The twice delayed
exchange is set to launch in July, with at least three state-owned firms
set to float – though private companies have also been quietly
approaching underwriters such as Phnom Penh Securities to prepare
Initial Public Offerings.
“We have received a lot of applications
from clients – who are mostly foreign-owned companies in the garment
sector. I haven’t seen any domestically-owned companies contact us yet,”
said Kuy Vat.
The motivation for listing was straight-forward,
he said. “They intend to go public because they need the money to expand
their business rather than borrowing from the bank.”
Foreign-owned companies in particular were aware of the benefits that listing could bring, he said.
A well-functioning exchange would bring more companies to list, he added.
Although
Phnom Penh Securities has not yet signed a contract to prepare an IPO
for a private firm, he said he plans to sign the first one soon. Kuy Vat
declined to name individual companies involved.
Another of the
seven approved underwriters, Tong Yang Securities (Cambodia), has been
discussing listings with companies from various sectors, said Managing
Director Han Kyung Tae.
“They are from various sectors – manufacturing as well as retail, and IT,” he said.
The Cambodia Securities Exchange will require private sector firms to list to be successful, according to an expert.
“That’s the government’s big ambition,” said Financial Institute of Cambodia Vice Rector Ghanty Sam.
“It wants private companies to go public,” he said, adding listings would improve procedures at traded companies.
Garment
Manufacturers Association in Cambodia Secretary General Ken Loo said he
was not aware of whether or not individual garment factories would
list.
He added it was the internal decision of factories to decide whether or not to list.
No comments:
Post a Comment