[PHNOM PENH POST]
THE Cambodia Securities Exchange will launch on July 11 though trading
may not begin until months later, according to a letter from the
Ministry of Economy and Finance.
The Ministry said it “plans to
inaugurate the Cambodia Securities Exchange … on July 11, 2011, and
based on the estimated progress of related work the first securities
trading will begin towards the end of 2011.”
The decision
regarding the two dates was based on the experience of other countries,
which launched their market operator first in order to allow them time
to prepare for securities trading, the ministry said in the letter,
which was dated May 26 and addressed as a public notice.
The
letter also stated related companies which had been accredited by the
Securities and Exchange Commission of Cambodia for a role such as
securities firms or cash settlement agents, were “strongly encouraged”
to push forward with their applications.
Cambodian officials said
last year the exchange would launch in July 2011 “at any cost,” though
officials from three state-owned enterprises slated to list say they
will not be ready to trade within two months.
Observers said the
announcement to inaugurate the CSX was an important signal that Cambodia
was committed to opening the exchange, even if trading did not begin
until later this year.
“It’s been delayed quite a bit, so people need to know it’s a reality,” said Leopard Capital Managing Partner Scott Lewis.
“If they just didn’t have anything, they’d risk credibility,” he said, adding that the move was a “confidence-building measure.”
Also, the Ministry was calling on companies that had considered listing to start the process, Lewis said.
None
of the three state-owned enterprises tapped to list on the bourse will
be ready for trading until later this year, company officials told The
Post last week.
Ek Sonn Chan, Director General of Phnom Penh
Water Supply Authority, said he hoped his firm would be ready by
November. In the meantime, PPWSA was working to meet the CSX’s listing
requirements.
“What’s important for us is that we are selecting
an accounting firm, independent auditor and law firm to comply with
international accounting standards,” he said.
Telecom Cambodia Director General Lao Sareoun said his company was in a similar situation to PPWSA.
“We
have a lot of work to do at the moment, like choosing an accounting
firm, independent auditor and law firms, which cost us a lot,” he said
last week, adding the board of directors would meet soon to decide on a
budget.
“We’re trying to finish our internal work by November.
But if we can’t finish by then, we’ll delay trading one more month,” he
said.
Tong Yang Securities (Cambodia) is advising PPWSA and
Telecom Cambodia on their public offerings. Managing Director Han
Kyung-tae said last week his firm was working hard to meet the
government’s deadline, though expectations were high.
“It is possible, but it is not going to be easy,” he said.
Sihanoukville
Autonomous Port needs more time to prepare its listing as well,
according to Japanese-owned SBI Phnom Penh Securities.
Director Jeremy Ha said the company needed another three to four months to bring it in line with accepted accounting standards.
“We are making progress, but I think it will take some time to complete things,” he said.
Ming
Bankosal, Director General of the Securities and Exchange Commission of
Cambodia, said last week that he was waiting on documents from firms
planning to list.
He said he was expecting companies to submit
their prospectuses, which is a required step in the listing process. At
least two months are needed for approval of those prospectuses before a
stock can start trading, he said.
“However, so far we haven’t received any.”
Officials
at the Ministry of Economy and Finance and the Cambodia Securities
Exchange could not be reached for comment yesterday.
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