Cambodia Securities Exchange (CSX) News

[SeeMacau]

http://www.phnompenhpost.com/index.p...next-year.html

CSX trading postponed again until next year

Wednesday, 12 October 2011 12:00
Soeun Say

Trading on the Cambodia Securities Exchange will be delayed once again until the beginning of 2012, Minister of Economy and Finance Keat Chhon said yesterday.

He blamed an incomplete regulatory regime and the public’s lack of confidence in the stock market as reasons for the delay, saying trading would most likely start early next year.

“It’s probably a little bit later than [the original] schedule. It will probably start trading from January,” Keat Chhon said, speaking to reporters after his speech at an International Business Chamber of Cambodia conference in Phnom Penh.

The stock exchange officially launched in July, though no companies were yet ready to list. Keat Chhon said at the time that stocks would begin trading by year’s end, before revising his outlook yesterday.

“We had been working conscientiously and still discussing some more rules and regulations to build a comprehensive rules and regulation for participants in the stock market,” he said.
“It can be in operation only if there is public confidence,” he added.

Keat Chhon also confirmed that three state-owned enterprises – Sihanoukville Autonomous Port, Telecom Cambodia and Phnom Penh Water Supply Authority – had been preparing for initial public offerings on the stock exchange.

Keat Chhon said another state-owned firm, Phnom Penh Autonomous Port, is also preparing a listing, as well as a number of private companies. However, he declined to name those private companies.

[mrfusion]

Delay again, this is disappointing, and make people loose confidence.

The correct way to approach this, is to accoumulate 10 or so company, have all their accounting, records etc, ready, have everything in the SX ready for trading and do the grand opening.

It is stupid to launch it say no company is listed, no trading for six month.

It is like open a supermarket with no products.

[SeeMacau]

Can you really believe this is a trading room?

The design of the interior is no difference to other ordinary office buildings.

Photo by: Meng Kimlong
The trading room at the Cambodia Securities Exchange, which officially opened in July in Phnom Penh.

[SeeMacau]

Firms question SECC prakas

Thursday, 13 October 2011 12:00
Tom Brennan and May Kunmakara

The Kingdom’s securities firms have raised concerns about an impending regulation that they said may stunt growth in the country’s fledgling financial markets.

The Securities and Exchange Commission of Cambodia is considering a regulation, or prakas, that will require all market participants to maintain a certain amount of net capital in reserve, among other measures intended to guarantee the financial soundness of these companies.

However, the firms themselves have taken issue with the way the net capital valuations will be determined. Most foreign assets, or those not sold in the Cambodian market, will be excluded from the value of a company’s total asset holdings under rules set out in the prakas, they said.

As a result, companies with smaller amounts of capital may find their holdings tied up largely in Cambodian assets in order to meet the SECC’s requirements, rather than what insiders have said are safer international investments.

Cambodia Capital managing partner Morten Kvammen this week told the Post the general concept of the prakas was “very good,” as “we want this measure of financial soundness to be an ongoing measure.”

However, he did note the risks involved for the Kingdom’s brokers, dealers and underwriters.

“If we’re struggling to meet net asset requirements, we’ll be forced to keep our money in local Cambodian securities. So it skews our assets in at least how we see it as more risky Cambodian assets rather than less risky overseas assets,” he said.

The SECC’s risk weighting of domestic investments, in effect, doesn’t reflect the true risk of those assets, he said. Still, Kvammen reckoned there was potential to work with the SECC to change the prakas.

“I don’t think anything is set in stone. It’s the beginning of a regulatory framework for the SECC,” adding the regulatory body has shown willingness to further develop the regulation as the market develops.

The prakas, if enacted, will require securities underwriters to set aside 40 billion riel (US$9.8 million), while dealers and brokers must hold 25 billion riel and 6 billion riel, respectively.

In addition, market participants would need to maintain a securities bond or securities instrument that would be used to further ensure a company’s financial viability. Underwriters would need a bond worth 4 billion riel, dealers 2.5 billion riel and brokers 1 billion riel.

However, only Cambodia-listed securities will be factored in – save foreign government bonds and other investment-grade bonds – when calculating those required amounts.

Tong Yang Securities Cambodia representative Han Kyung-tae this week said the regulation would limit companies’ ability to grow their business because Cambodia so far has few investment options for market participants. That in turn could possibly open participants to more risk than if money put to work outside the Kingdom was recognised. “To enhance the [financial] soundness [of companies], we need to diversify our investments,” he said, pointing to other markets such as Hong Kong and South Korea.

Also, he said companies with limited capital at the start of operations may find it difficult to both meet the SECC’s capital requirements and meet the necessary cash reserve to, say, underwrite an initial public offering, thereby hampering their business.

SECC director general Ming Bankosal said this week the prakas was designed to boost investment in Cambodia at a time when the domestic market needed it.

“The object is to do business in Cambodia, so we’d like that capital to stay in Cambodia,” he said. He also pointed to the risks inherent in any type of investing, whether in the Kingdom or overseas, especially given the present troubles in the United States and European Union.

“You cannot invest anywhere where there is no risk,” he said.

Ming Bankosal agreed with Kvammen that the regulation could be altered as Cambodia’s financial markets develop and grow, but he was unable to offer a timeline for when that would happen.

At the same time, he said he was “disappointed” that none of the companies raised the issue during a public consultation last Friday.

He urged all market participants to contact the SECC with any concerns so that they may be included in the prakas before it is finalised, which he said should be by the end of the month.

Kvammen said Cambodia Capital has in fact submitted its concerns to the SECC “in a private consultation earlier, but they do not appear to have been reflected in the final draft” of the prakas.

Also, “The case in general with the public consultations is that they have minimal impact on the final outcome. It is primarily a procedural step,” he said.

[SeeMacau]

Kingdom licenses newest advisory firm

Friday, 28 October 2011 12:05
May Kunmakara

The Securities and Exchange Commission of Cambodia approved yesterday a license to IRIS Securities to be the 13th securities investment advisory firm in the Kingdom’s budding capital market. The approval licence came during a board meeting yesterday in which SECC director general Ming Bankosal welcomed the newcomer to the industry. “We are open to having more advisory firms. They help to educate people and promote Cambodia. We don’t limit the number of underwriters, dealers or brokers because our market is small,” he said.

[SeeMacau]

Private firms plan CSX IPOs

Thursday, 03 November 2011 12:01
May Kunmakara

First private-sector companies show interest

A logistics firm and two garment manufacturers planned to list on the Cambodia Secur-ities Exchange during the second half of 2012, underwriter Phnom Penh Securities said yesterday.

The companies are the first known private businesses to confirm their intentions of listing on the Kingdom’s still-dormant bourse.

Manufacturing companies Grand International Ltd and TY Fashion Co Ltd signed initial-public-offering preparation contracts in June and July, respectively, Phnom Penh Secur-ities CEO Stephen Hsu said.

Olair Dry Port Worldwide Co Ltd, a logistics firm, had reached an underwriting deal in mid-July, he said.

The plans – among several rumoured private listings – were a welcome signal from the private sector, as so far only the state-owned firms Phnom Penh Water Authority, Sihanoukville Autonomous Port and Telecom Cambodia were expected to hold offerings, Hsu said.

“The listing of these private companies will add to the vitality and liquidity of the market,” he said, adding that Phnom Penh Securities submitted letters of intention to the Securities and Exchange Commission of Cambodia in mid-August.

The prospect of an incerease in public listings on the CSX represented a maturing Cambodian market, SECC deputy director-general Huot Pum said yesterday.

“It’s good news for us, because it proves that our people are aware of the new market and [it shows] we will have more liquidity,” he said.

“Whenever we get more private companies listed, it means that our market is improving.”

Phnom Penh Securities’ Hsu said at least 10 other private companies, including banks, transportation and insurance companies and garment manufacturers, had signed underwriting contracts or were in negotiations with his company. Subsequent letters of intent would be submitted when they were ready, he said.

“I predict about 10 companies will be listed on the CSX by end of 2012, five of which will be [underwritten by] Phnom Penh Securities. This will bring not only liquidity but also ensure the confidence of investors,” Hsu said. Phnom Penh Securities does not appear to be alone in advising clients on holdings IPOs.

Tong Yang Securities managing director Han Kyung-tae, underwriter for Phnom Penh Water Authority and Telecom Cambodia, claimed during a conference in October that his firm was in talks with some private companies about listing.

The bourse officially opened on July 11, but trading was delayed until the end of the year because the three state-owned enterprises that planned to list were not ready. Technical difficulties also accounted for the delay.

In October, Minister of Economy and Finance Keat Chhon announced listing would be further delayed until next year, saying also that Phnom Penh Autonomous Port was preparing for an IPO as well.

The delay should allow securities firms and potential IPO candidates enough time to get ready for the market and enable the governing body to improve and develop rules and regulations to ensure smoothness of the market operation and public confidence, Hsu said.

Grand International Ltd, TY Fashion Co Ltd and Olair Dry Port Worldwide Co Ltd declined to comment for this article.

[SeeMacau]

China-invested securities firm opens doors in Cambodia

http://english.peopledaily.com.cn/90778/7685779.html

(Xinhua)
09:10, December 23, 2011

PHNOM PENH, Dec. 22 (Xinhua) -- The Golden Fortune (Cambodia) Securities PLC (GFS), a joint-venture between Chinese and Cambodian investors, launched its operations here on Thursday, aiming at tapping the country's emerging financial sector.

The GFS is one of the two securities dealers obtained license from the Securities and Exchange Commission of Cambodia (SECC), according to the firm's Chairman Zhang Yun Feng.

"We see the potential in the upcoming Cambodian Securities Exchange (CSX) and we are committed to participating in the development of Cambodia securities market from the beginning," he said at the launch, adding that the firm has put the initial investment of 10 million U.S. dollars.

Zhang said the firm has more than 10 years of skilled and experienced managements from overseas in particular skilled staff who has experience in developing securities market in China.

"Our decision to invest here follows the observation that the country is full of political stability and the financial industry has lots of room to grow," he said.

Securities dealers played an important role in trading of securities in secondary market through CSX's trading system to provide not only brokerage service to public investors, but also in trading their own account assuming all the risks themselves, Cambodia' s Deputy Prime Minister Keat Chhon, Minister of Economy and Finance, said at the GFS's inauguration.

He said the firm was another evidence of the readiness of securities firm in fulfilling its important roles as intermediary in market operation and mobilizing fund from investors through securities market mechanism.

"The GFS will contribute to the development of the CSX and Cambodia's economy," he said. "I strongly believe that the firm will build confidence for investors, which is the key to success of business and securities market as a whole."

The CSX was officially inaugurated in July this year, but securities trading will be expected early next year due to there is no listing company.

To make the securities trading possible, the government of Cambodia ordered three state-owned enterprises, Sihanoukville Autonomous Port, Phnom Penh Water Supply Authority, and Telecom Cambodia, to prepare Initial Public Offerings (IPO).

"The upcoming securities trading in the CSX will be operating with transparency, accountability, efficiency, fairness and protecting public investors because we have already constructed sound rules and regulations," said Keat Chhon.

The plan to open the CSX was initiated by Korean Exchange in 2007. The CSX is a joint venture between the Korean Exchange holding a 45 percent stake and the government of Cambodia owning the remaining 55 percent.

[SeeMacau]

Deputy Prime Minister and Minister of Economy and Finance, Keat Chhon, attends a mock trading session at Canadia Tower in Phnom Penh January 12, 2012. Cambodia launched the Cambodia Securities Exchange (CSX) in July last year in partnership with Korea Exchange, with no listed companies. The government has yet to set a new date for the trading of three state owned firms.

Pic Source : Reuters

[SeeMacau]

Staff of Cambodia Securities Exchange (CSX) test the computer system during a mock trading session at Canadia Tower in Phnom Penh January 12, 2012. Cambodia launched the CSX in July last year in partnership with Korea Exchange, with no listed companies. The government has yet to set a new date for the trading of three state owned firms.

Pic Source : Reuters

[SeeMacau]

Pic Source : Reuters

[SeeMacau]

CSX technically ready for listing

Diana Montaño and May Kunmakara
Friday, 13 January 2012

Heng Chivoan/ Phnom Penh Post

Hong Sokhour, CEO of the Cambodia Securities Exchange, gives a stock-trading demonstration yesterday at the CSX in Phnom Penh.


The final technical aspects of the Cambodian Securities Exchange were completed yesterday, readying the exchange for listing and trading, government officials said.

A date for the initial public offerings of the three companies expected to list on the exchange was not disclosed.

“The securities market infrastructure is now complete,” Economy and Finance Minister Keat Chhon said during an exchange simulation yesterday, explaining that securities firms and banks were connected via the CSX IT system.

In a separate training session late yesterday, officials from the Securities and Exchange Commission of Cambodia (SECC) met with leaders from the three expected listers –Phnom Penh Water Supply, Telecom Cambodia and Sihanoukville Autonomous Port – to discuss corporate governance.

Officials have attributed the delays in listing on the exchange, which officially opened in July, to a lack of familiarity with standard trading procedures among companies.

Company transparency and accountability to stakeholders was a main concern at yesterday’s training session.

“Effective corporate governance is essential to a well-functioning public market,” Ruwan Hulugalle, a market-entry consultant, said during the session. “It maintains the trust and confidence of shareholders and investors.”

Lim Channa, acting head of the corporate governance division of the SECC, said companies were still in the process of selecting independent and non-executive directors, one of the SECC’s benchmarks for meeting good governance standards.

Lao Saroeun, director-general of Telecom Cambodia, said forming the board of directors was a challenge, given that the process started from scratch.

[SeeMacau]

Predictions for CSX start date

http://www.phnompenhpost.com/index.p...tart-date.html

Heng Chivoan/ Phnom Penh Post
A man viewed through the window of the trading room at the Cambodia Securities Exchange earlier this month.


The Cambodia Securities Exchange may launch as soon as March or April, according to an official at the Korea Exchange, the Kingdom’s partner in launching its stock market.

Final preparations for the CSX’s initial public offerings should be complete at that time, Pat Gil-soo, senior vice-president for global business development, said yesterday.

“I hope to visit [Phnom Penh] again in late March or early April for the opening ceremony,” he said.

But Pat Gil-soo said the decision was ultimately up to the Cambodian government, so he could not offer an exact launch date.

Korea Exchange and the Ministry of Economy and Finance formed a joint venture for the establishment of the CSX in 2006, with Cambodia holding 55 per cent and KRX holding 45 per cent.

The exchange was twice delayed prior to its opening last July, and trading has yet to begin.

Economy and Finance Minister Keat Chhon said last week the CSX was technically ready for trading, as all securities firms and cash settlement agents had been connected to the exchange’s computer systems.

Keat Chhon told an investor forum last November he expected trading to begin early this year.

Insiders last month assumed trading was imminent after Phnom Penh Water Supply Authority, one of three state-owned enterprises slated to begin trading on the exchange, was granted permission to list by CSX officials.

Tong Yang Securities managing director Han Kyung-tae, whose firm is an underwriter for Phnom Penh Water Supply, predicted a first-quarter start. “We are close to the end of preparations,” he said yesterday.

CSX chief executive Hong Sok Hour could not be reached for comment yesterday.

[SeeMacau]

PPWSA makes pitch to investors before IPO

May Kunmakara
Tuesday, 28 February 2012

Trading on the Cambodian Securities Exchange should begin at the end of March as the Kingdom’s first stock, Phnom Penh Water Supply Authority, prepares to consult and share information with potential investors this week.

The company would host a “roadshow” for investors in anticipation of its initial public offering and carry out a process known as book-building, in which PPWSA and its underwriter determine the price of the IPO, company chief of accounting and finance Ros Kimleang said yesterday.

“We are doing the roadshow in an attempt to tell investors about our potential. They will learn more information about our company’s background and business profile,” he said, adding that the process would begin on Wednesday.

Securities and Exchange Commission of Cambodia director-general Ming Bankosal said local and foreign investors, as well as the public, could participate in the road-show and book-building to gain insight on the company.

Ming Bankosal said the roadshow was a sign that the IPO was not far off.

“We believe the trading activities will happen soon,” he said.

Neither Ming Bankosal nor Ros Kimleang gave an exact date for trading, but ACLEDA Securities director Svay Hay said the IPO price would be concluded one week after the book-building.

About two more weeks would be needed to transfer investor trading information to the Cambodia Securities Exchange, putting the listing date at the end of March.

Two other state-owned companies – Telecom Cambodia and Sihanoukville Autonomous Port – are expected to list this year, but no deadline has been given.

[hopeoneday]

Originally Posted by SeeMacau

PPWSA makes pitch to investors before IPO

May Kunmakara
Tuesday, 28 February 2012

Trading on the Cambodian Securities Exchange should begin at the end of March as the Kingdom’s first stock, Phnom Penh Water Supply Authority, prepares to consult and share information with potential investors this week.

The company would host a “roadshow” for investors in anticipation of its initial public offering and carry out a process known as book-building, in which PPWSA and its underwriter determine the price of the IPO, company chief of accounting and finance Ros Kimleang said yesterday.

“We are doing the roadshow in an attempt to tell investors about our potential. They will learn more information about our company’s background and business profile,” he said, adding that the process would begin on Wednesday.

Securities and Exchange Commission of Cambodia director-general Ming Bankosal said local and foreign investors, as well as the public, could participate in the road-show and book-building to gain insight on the company.

Ming Bankosal said the roadshow was a sign that the IPO was not far off.

“We believe the trading activities will happen soon,” he said.

Neither Ming Bankosal nor Ros Kimleang gave an exact date for trading, but ACLEDA Securities director Svay Hay said the IPO price would be concluded one week after the book-building.

About two more weeks would be needed to transfer investor trading information to the Cambodia Securities Exchange, putting the listing date at the end of March.

Two other state-owned companies – Telecom Cambodia and Sihanoukville Autonomous Port – are expected to list this year, but no deadline has been given.

I am still blur about its process. low knowledge !

[SeeMacau]

The securities ecxhange start trading on 18th April (after Khmer New Year)

[SeeMacau]

Originally Posted by hopeoneday

I am still blur about its process. low knowledge !

I would call it a ''high-risk'' investment

[hopeoneday]

Originally Posted by SeeMacau

I would call it a ''high-risk'' investment

High risk , High return, isn't it?

[AsianDragons]

not if it was an airline, expensive plane eg airbus a320 60million, 180 seats fares: 40 per 1000km trip, lots of airlines are now becoming bankrupt because of fuel prices, the industry has less than a 1% return of profit

[mrfusion]

Originally Posted by AsianDragons

not if it was an airline, expensive plane eg airbus a320 60million, 180 seats fares: 40 per 1000km trip, lots of airlines are now becoming bankrupt because of fuel prices, the industry has less than a 1% return of profit

I think budget airline goes out of business because it does not have a operational fund, to cover for fuels, etc, and always run into the red. It also doesn't have enough flight and different destination so some profitable flight can compensate their non-profitable flight.

[kimmy]

The Kingdom’s first IPO

Thursday, 08 March 2012 Share5

The long awaited first security listing on the Cambodian Securities Exchange became a reality on February 23 with the Security Exchange Commission of Cambodia’s “in principle” approval of Phnom Penh Water Supply Authority’s (PPWSA) “disclosure document for public issuance of equity securities”.

This is effectively a preliminary prospectus that includes information on the company such as its history, operations, management and financials as well as the terms, proceeds use, timetable, and risk factors of the offer.

TongYang Securities (Cambodia) Plc, an overseas affiliate of South Korea’s TongYang Securities Inc, will act as sole underwriter, book runner and lead manager.

An initial public offering, also referred to as a primary offering, is first sale of a company’s shares to investors on a public exchange. PPWSA intends to issue 13.04 million ordinary shares with a par value of 1,000 riels.

This represents a 15 per cent float, the total amount of shares publicly owned and available for trading.

Eleven per cent of the float will be allocated to the company’s employee stock option plan.

The state, represented by the Ministry of Economy and Finance will retain 85 per cent ownership or 73.9 million shares.

The role of the underwriter is to file the registration documents, advise on the IPO pricing, sell and distribute the securities, position and market the company, and purchase all the securities to be offered from the issuer under a firm commitment, which is the case of this offering.

Book building is the process of recording investor demand and the price the investor’s are willing to pay.

For PPWSA offering, this began on February 29 and ends March 13.

Interested investors must submit a book building form indicating the quantity of shares desired and a bid price, which must be in the range of the indicative offering price.

A 10 per cent deposit is required based on the total equity value of securities that prospective investor has bid for.

The indicative offering price is US$1.00 to $1.57.

The final offering price will be determined by the underwriter and issuer, using the weighted average method based on the price and the quantity of securities that investors have selected and indicated in the book building form.

The Cambodia Securities Exchange and Securities Exchange Commission must approve the final offering price.

Successful bidders will be informed by the company and may subscribe for a quantity of securities in which they bid, or a larger amount with an additional deposit, during the subscription period.

Subscriptions can be made through designated branch offices of ACLEDA Bank and ACLEDA Securities, the selling agent for the underwriter.

There is a reserve of shares for unsuccessful bidders and investors who did not subscribe during the book building process.

The prospective listing date is April 18, and secondary market trading begins thereafter.

PPWSA intends to pay a dividend.

PPWSA is forecasting revenues of $28.3 million for 2011, up from $26.2 in 2010.

Net profit for 2009 was $6.4 million and was $7.2 million in 2010. The company expects to continue to expand its service coverage, increase production capacity, reduce its water losses, and grow its customer base. PPWSA is a monopoly supplier.

Proceeds from the offering will be used to repay loans from the World Bank, CAPEX, business expansion and working capital.

The prospective price-earnings ratio is between 11 and 18, in line with other water utilities around the world – a very exciting time for the Kingdom’s evolving capital markets.