A Cambodian special economic zone debuted on the domestic stock market on Monday after an initial public offering raised around $8.2 million, becoming only the fourth company to list on the country's stock exchange.
The Cambodia Securities Exchange (CSX), a joint venture with South Korea's bourse, was launched in 2011 but has struggled to attract listings as domestic firms have been reluctant to commit to the level of transparency required and have grappled to meet listing rules.
The Phnom Penh Special Economic Zone (PPSEZ), operator of a 357-hectare park on the outskirts of the Cambodian capital Phnom Penh, had offered 11.5 million new shares priced at 2,860 riels ($0.71) each.
"Our decision to go public is rooted in our desire to keep growing," said Cambodian tycoon Lim Chhiv Ho, chairwoman of PPSEZ, at an official opening ceremony in Phnom Penh.
PPSEZ's shares opened at 2,840 riels each and then hit a high of 2,980 riels before retreating to 2,900 riels. CSX's CEO said more work was needed to attract new listings on the bourse.
"Even though there are good companies listed, the choices are few for investors," CSX CEO Hong Sok Hour said, adding that the exchange plans to offer free-of-charge advice service to firms and will launch a new platform so that small and medium-sized companies can list.
Many Cambodian firms are unwilling to provide financial statements or to comply with taxation laws, according to investors.
The other three firms listed on the bourse are state-run Phnom Penh Water Supply Authority, Taiwanese garment maker Grand Twins International and the state-run Phnom Penh Autonomous Port.
Chhiv Ho said that the funds from the IPO will be used to expand the PPSEZ and a new 53-hectare zone near the Thai-Cambodia border that aims to attract foreign investors.