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Second Port Plans to List on Bourse

Monday, 14 December 2015  |  Source: Khmer Times

The largest port in the Kingdom, Sihanoukville Autonomous Port, will list on the Cambodia Securities Exchange (CSX) in the first half of next year, its director general Lou Kim Chhun said yesterday.

The port's growth over the last few years created an opportunity for it to list on the bourse next year, Mr. Kim Chhun explained, noting that a company must have three years of consecutive profits to be eligible to list on the CSX.

"Our business performance is growing along with the economy, so we have set a target for listing by mid-2016," he added.

Mr. Kim Chhun also said that the port's losses in late 2011 and 2012 were the result of currency fluctuations rather than its operations. "We did not lose business in late 2011 and 2012, but the fluctuation in the Japanese yen affected us because we had a loan from the Japanese government for developing our existing port and building a new one. This caused our debts to rise. Now, the yen has fallen, while the number of containers and goods passing through the port are growing," he said.

"Now it is the right time for us to list as we just have a bit of work to do on the IPO [initial public offering] to be completed soon," Mr. Kim Chhun said.

The port received a $77 million loan in 2004 for its overall development and a further $126 million in 2009 from Japan via the Japan International Cooperation Agency for the construction of a special economic zone and a multipurpose terminal.

The port has yet to submit its business plan to the Securities Exchange and Commission of Cambodia (SECC) to determine its listing eligibility, according to an official who asked not to be named.

CSX CEO Hong Sok Hour told reporters after the listing ceremony of Phnom Penh Autonomous Port (PPAP) last Monday that a few more companies, including Sihanoukville Autonomous Port, planned to list next year.

Minister of Economy and Finance Aun Porn Moniroth urged companies to list on the CSX by 2017, while presiding over PPAP’s listing ceremony. He noted that the government had provided a tax incentive for companies to list by that year.

"I would like to remind those present that to boost the Cambodia Securities market, the Royal Government issued a sub decree on tax incentives in the securities market to encourage public issuing of shares. Listed companies have been granted a 50 percent reduction on tax on profit, and companies that issue and list their shares by 2017 receive exemption on profit tax," said Mr. Moniroth.

Mr. Kim Chhun said Sihanoukville Autonomous Port will see its revenue rise 16 percent this year to about $45 million. "This year, with economy growth we see our revenue increase to around $45 million, or a 16 percent increase over last year. I expect that we will reach $50 million in 2016," he said.

Three companies are listed on the CSX with the arrival of PPAP last Monday. Its share price closed at 5,300 riel yesterday, up by 0.76 per cent with 28,438 shares changing hands.