The MoU signing between IDI and Royal Group Securities Plc on August 1. ID INVESTORS ASSOCIATION
Locally-owned Royal Group Securities (RGS) and the Innovation and Development Investors Association (IDI) signed a memorandum of understanding (MoU) to help private firms raise funds through initial public offerings (IPOs).
The MoU was signed between RGS CEO Seng Chan Thoeun and Hor Sereyvath, IDI and ID Capital Plc board chairman, on August 1.
Speaking to The Post on August 7, Seng Chan said both institutions want to support members, business partners and related parties in raising capital or funding via IPO, bond issuance and private funding.
The partners also aim to establish a channel to exchange information regarding financial services, provide education programmes and training, organise study tours, for RGS employees and IDI members.
There are also initiatives to set up joint marketing activities with the objective of increasing brand awareness.
“RGS and IDI will work together to [show] how companies in Cambodia, especially IDI members, can raise funds through the capital market via IPOs or bond offerings.
“We believe that there are many companies who are in need of funding as they mature and there will be a time when companies need additional capital than what is offered through private lending,” Seng Chan said.
With this information, he believes that there would be many companies in Cambodia which would be keen to launch IPOs on Cambodia Securities Exchange (CSX) as it offers more flexibility in dividend distribution while improving their image.
Seng Chan commented that RGS would work in tandem with CSX, the Securities Exchange Regulator of Cambodia and relevant organisations to support the growth and requirements as much as possible.
“Through the MoU, we hope to be able to establish trustworthy financial advice to IDI members and help them through their capital-raising journey going forward.”
As of June 27, 10 stocks have been listed on the local bourse – eight on the Main Board and two on the secondary Growth Board – with a cumulative capital of $124 million raised.
Additionally, $323.5 million worth of corporate bonds have been issued on the CSX.
Kim Sophanita, Director of Market Operation Director of CSX said the collaboration reflects the effort made by two companies to encourage more local firms to raise fund from the capital market which gives them a good credibility after listing.
“Since the listing of CAM GSM and MJQE, there is a growing interest in IPOs especially from the local institutions. This kind of collaboration and similar efforts can see more companies receive technical support and beyond. In the long run, it would help increase the number of publicly listed companies and grow the capital market in Cambodia,” she said.
