The arrival of the stock market and its implications
It began in November of 2006 with a memorandum of understanding (MOU) between the Ministry of Economy and Finance (MEF) and the Korean Exchange (KRX) titled “The Development of the Securities Market of Cambodia.” A further MOU between the parties in January, 2008 established the Cambodia Securities Exchange (CSX), of which the MEF owns 55 per cent and the KRX own 45 per cent. On July 11, 2011, the CSX was inaugurated, however without any listed equities to trade. The launch of Cambodia’s equity market finally came to fruition Februry 29 with the commencement of book-building by sole underwriter, book runner and lead manager Tongyang Securities (Cambodia) for the primary offering of Phnom Penh Water Supply Authority, the first initial public offering in Cambodia. An IPO is the first sale and issue of a company’s shares to investors on a public exchange. A company may require equity to expand, develop new products, purchase buildings or equipment, to acquire another company or simply for working capital. There are generally two methods to raise capital, through debt financing or equity financing. ….
