CIA first International School Co Ltd will soon raise funds through the listing of corporate bonds on the Cambodia Securities Exchange (CSX) for their business expansion. This makes them the second firm from the education sector to be listed on the local bourse.
The exchange announced on November 29 that the school had received approval in principle on November 23. They will now seek further approval from the Securities and Exchange Regulator of Cambodia (SERC).
“CSX is honoured to notify the public that [it] granted its approval in principle on bond listing eligibility review to [CIA FIRST] on November 23, 2023. In order to be officially listed and have its securities traded on the CSX, [the company] shall get offering approval from SERC and meet further listing requirements of the CSX,” the announcement stated.
The bourse highlighted that the school is the third to obtain approval in principle for bond listing eligibility review from the exchange this year.
Established in 2016 in Phnom Penh, CIA FIRST operates three campuses offering education from kindergarten to grade 12, as per the statement.
Hong Sok Hour, CEO of the CSX, confirmed on December 4 that the firm is currently working with SERC to obtain listing approval on the bourse.
“We believe that the company will soon complete the remaining work, enabling them to list by year’s end. The issuance is intended for qualified investors, which simplifies their preparation process,” he said.
“The amount they plan to raise from the bourse is substantial. However, they are currently working with SERC and discussing with their investors, so the exact amount to be raised is not yet determined – but it will be substantial,” he added.
SERC director-general Sou Socheat told The Post on December 4 that he had received the application documents from the company, and his technical team was reviewing them before seeking approval from the chairman of the Non-Bank Financial Services Authority (NBFSA).
“We need to review their application thoroughly, yet we aim to expedite the process as much as possible. We anticipate approving the application before the year’s end or early next year, allowing the company ample time to manage subscriptions before listing on the bourse,” he said.
According to the CSX, there are 21 firms listed on the exchange, including 11 stocks and 10 corporate bonds, which collectively raised $349 million.