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Phnom Penh SEZ Tight-lipped About Listing Date

Monday, 08 February 2016  |  Source: Khmer Times

Phnom Penh Special Economic Zone (PPSEZ) will not list on the Cambodia Stock Exchange (CSX) until next month because it has yet to complete all the steps necessary for listing, despite having received approval to do so, a senior executive told Khmer Times.

PPSEZ CEO Hiroshi Uematsu said he could not confirm a date for listing but said the company is working to prepare to list on the bourse but needs more time to prepare. "We are constantly upgrading and preparing ourselves for the listing, but will only list when everyone is ready to go," Mr. Hiroshi said.

Mr. Hong Song Hour, director general of CSX, said last month that PPSEZ shares would start trading in March at the latest, saying the company had already received approval from the CSX and Securities and Exchange Commission of Cambodia (SECC) to list and was calling for partners to purchase shares.

"We expect to have two or three companies listed on the CSX, such as Phnom Penh SEZ, TY Fashion, Phnom Penh Sihanouk Autonomous Port [this year], but the first company PPSEZ will list on the CSX in March or early than that," Mr. Song Hour said.

"PPSEZ has already received approval from the CSX and the SECC, and is now seeking partners to purchase its shares," Mr. Song Hour said.

Mr. Song Hour said some companies are afraid of buying shares on the CSX because of the volatility on stock markets in China. The CSX is also small and relatively new so it has yet to gain the trust of shareholders, but more shareholders will buy stocks in the future, Mr. Song Hour said.

About 7,000 trading accounts have been opened for the CSX, but less than 100 are active each day, Mr. Song Hour said.

When asked whether concerns about stock market volatility in China was causing potential investors to shy away from PPSEZ, Mr. Uematsu said the special economic zone was not dependent on Chinese investment.

"Of course, we are paying a lot of attention to the Chinese market conditions but we are not dependent on it as a business. Most of our investors are Japanese and international companies. We are not looking for fast profits, we want to provide stable returns to our investors for years to come," he said.

Slowdowns of large economies have been occurring for decades, while stock markets fall but always rebound, he added. "I think nobody doubts the strength of the Chinese economy. But we are here for the long term. We are dynamic and at the same time very stable in the way we manage our expanding operations," Mr. Uematsu said.

Mr. Uematsu added that PPSEZ is the most prosperous SEZ in the country and has been around for almost a decade. It generated $23.4 million in revenue in 2014, he said, adding that it is leading Cambodia’s industrialization and its commitment to list on the CSX was not dependent on external factors.

"We believe that our financial health, our international management, constant growth and our ability to attract major international groups such as Coca-Cola, Minebea, Toyota and many others will convince the public to invest in PPSEZ. We have been working very hard to prepare our future IPO and we are confident in its positive result," he said.

Phnom Penh SEZ is located about eight kilometers west of Phnom Penh International Airport, or about 18 km from the city center.

It has said it plans to issue about 20 percent of its total shares on the bourse this year to raise funds for expansion.