Cambodian equities face an uncertain future

Author: Ashley Lee | Published: 20 Aug 2015

Four years have passed since the Cambodian Securities Exchange (CSX) opened. Despite its few listings, market participants remain optimistic

Only two initial public offerings (IPO) have taken place in the past four years, echoing predictions made when the exchange first opened. CSX, which is 45% owned by the Korea Exchange, has onerous listing requirements which has contributed to its IPO drought.

Phnom Penh Water Supply Authority listed in 2012, while garment maker Grand Twins listed last year after a lengthy process. Those wanting to following their footsteps must present at least three years of financial statements and have been profitable for the same period of time – a significant hurdle in the frontier market.

"There are not a lot of companies that are ready to list themselves under Cambodia’s listing rules at the moment," said Matthew Rendall, senior partner at SokSiphana...