Logo of Phnom Penh Post newspaper Phnom Penh Post - How can SMEs list on the stock market?



How can SMEs list on the stock market?

Content image - Phnom Penh Post

How can SMEs list on the stock market?

The securities sector in Cambodia has grown steadily since its inception, with nine companies now having listed their equity securities on the Cambodia Securities Exchange (CSX).

To encourage further development, the Securities and Exchange Regulator of Cambodia (SERC) has established a growth board for small to medium sized enterprises to be able to take advantage of initial public offerings (IPOs)

What is a publicly listed company?

A publicly listed company refers to a public limited company or permitted entity that has proposed or issued a public offer of securities.

Why does a company go public?

An initial public offering (IPO) is a way for companies to raise capital from the general public to expand business performance through the IPO, which is an alternative to traditional options such as bank loans.

An IPO provides numerous benefits to the issuer – in addition to raising finance from the general public for future development and strengthening capital structure – including obtaining long-term funding sources, tax incentives and establishing a strong reputation.

It also can boost public visibility, which can lead to attracting greater attention from potential investors, help achieve business sustainability with stronger corporate and internal governance, attract and retain employees, and increase proactivity to government regulations.

How to prepare an SME for a public offering?

After observing the growth potential of small and medium enterprises (SMEs), the Securities and Exchange Regulator of Cambodia (SERC) decided to establish a growth board to allow SMEs to raise funds through public offerings.

CURRENT EQUITY LISTED COMPANIES

Content image - Phnom Penh Post
The securities sector in Cambodia has developed steadily since its establishment, with nine companies now having listed their equity securities on CSX.

In order to go public, SMEs have to undergo four major stages:

• Preparation: The company shall show good corporate governance (a management structure in accordance with the regulations in force) and a financial statement within the last financial year audited in accordance with the law and regulations.

The company’s business activities should be in the public interest and its operations sustainable. An IPO team will be established to check the due diligence of the company.

• Feasibility listing: The company shall comply with the listing requirements of the listing rule of CSX to be able to apply for the feasibility listing with CSX.

• Application to request IPO: The company shall prepare and submit its application to SERC for the IPO.

SERC will evaluate the application and all other relevant documents, particularly disclosure documents, before granting approval.

After obtaining approval and disclosure document registration from SERC, the company shall process the securities subscription.

After the completion of the securities subscription, the company has to submit the report on the subscription result to SERC.

•Officially listing on CSX: The company shall complete an application form to CSX to be officially listed in accordance with the regulations in force.

Prepared by: Securities and Exchange Regulator of Cambodia,

Securities Issuance Supervision Department,

E-mail: [email protected].
Phone: 023 885611.

MOST VIEWED

  • Ice cream, noodles flagged over carcinogen

    The General Department of Customs and Excise of Cambodia (GDCE) has identified three types of instant noodles and ice cream trademarks originating from Thailand, Vietnam and France that are suspected to contain ethylene oxide, which poses a cancer risk to consumers. The general department has

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Exclusive interview with Josep Borrell Fontelles, High Representative of the EU

    CAMBODIA is hosting the 55th ASEAN Foreign Ministers’ Meeting (AMM) and Related Meetings this week with top officials from the US, China, and Russia and other countries in the region slated to attend and to meet with face-to-face with their counterparts on the sidelines. In

  • Rise in Thai air routes to Siem Reap fuels travel hopes

    Local tourism industry players are eager for regional airline Bangkok Airways Pcl’s resumption of direct flight services between the Thai capital and Siem Reap town on August 1 – home of Cambodia’s awe-inspiring Angkor Archaeological Park – which is expected to boost the growth rate of

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’