Two private companies have applied to list shares on the Cambodia Securities Exchange (CSX) through initial public offerings (IPOs) and bonds in the forthcoming months to maintain and broaden their businesses.

CSX CEO Hong Sok Hour told The Post recently that in the last few years, the local bourse has emerged as an alternative source of domestic capital for the private sector. 

He said the development is significant, especially considering the ongoing decline in global and regional economic situations.

“We are reviewing two companies that are applying for an IPO, encompassing both securities and bonds. We expect the review to be completed by April, enabling them to proceed with their plans,” he stated.

Sok Hour observed a growing interest in issuing securities among companies in recent years. 

“They clearly understand that the CSX represents a new source of capital for raising funds to sustain and expand their businesses,” he added.

He mentioned that although the investment volume in the first two months of 2024 remained small, the opening of trading accounts showed an increase, with around 1,000 new accounts being opened each month.

Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), remarked at a recent event that over the past decade, the bourse has listed 23 firms.

He said these enterprises have collectively raised nearly $400 million from the market, adding that 11 are stock-listed and 12 are corporate bond-listed, which includes green and sustainable debt securities.

“This achievement is a source of pride for Cambodia. Despite being a late starter with a relatively small size, our market’s implementation and development align with regional and global trends,” Socheat stated.

The Securities Investors Association of Cambodia (SIAC) was officially launched earlier this month. It aims to attract investors and provide more training for human resources in the local securities market, aligning with the increasing number of listed companies.

The association will engage in training related to securities trading, IPOs, bonds, derivatives, joint ventures, digital assets and other financial instruments, under the guidance of the exchange regulator, as per the SIAC.

According to Socheat, the regulator had issued a total of 48,477 investor identification numbers by February 2024.

As of March 3, it had granted licences, permits and accreditation to approximately 130 companies operating in the sector, including securities firms and distributors, financial and investment advisers, central counterparties, derivatives brokers, fund managers and trustees, among others.