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How can SMEs list on the stock market?

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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.


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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.


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