Growth Board all clear for first listing

The Securities and Exchange Regulator of Cambodia (SERC) on June 22 approved DBD Engineering Plc for public listing on the Cambodia Securities Exchange’s (CSX) Growth Board. Expected to list later this year, the company will become the first to trade on the bourse’s secondary board which launched back in 2015.

Minister of Economy and Finance and SERC chairman Aun Pornmoniroth headed the meeting that made the decision.

SERC director-general Sou Socheat, also joining the meeting, told The Post that the green light sets the stage for the company to proceed with the subsequent subscription and other listing processes.

“We welcome the company’s active involvement, which has culminated in its listing on the CSX’s Growth Board, becoming the first on the board.

“The go-ahead is meant to signal to all small and medium-sized enterprises [SME] that companies are able to raise more funds from the CSX, through the Growth Board, pushing back against the notion that only big companies can raise funds from the capital market,” he said.

Socheat said the company should unveil a schedule for subscription and other listing processes in the next couple of weeks. “In early July, we will see the company announce the preparations of subscription and other listing dates.”

In early April, CSX granted approval in principle for DBD Engineering Plc’s Listing Eligibility Review Application for trading on the Growth Board.

CSX Listing and Disclosure Department director Hay Lideth told The Post on June 22 that CSX had also given in-principle approval for the company’s securities pricing.

“As the first company to be listed on the Growth board, DBD Engineering is one of the leading companies in the MEP [mechanical, electrical and plumbing] business, having provided their services to notable projects like Aeon Mall, the Chip Mong malls and others for around two decades.

“With its reputation and overall firm performance, DBD is fit to be the first Growth Board-listed company in CSX’s history and will be a fine example for other SMEs to consider raising funds for business expansions via the capital market,” he said, adding that he expects the company to list this year.

Founded in 1995, DBD provides solutions in many fields, such as designing, engineering, construction, mechanical, electrical, plumbing, heating, ventilation and air-conditioning.

The CSX has struggled to attract a single SME to its Growth Board since its 2015 launch.

According to SERC regulations, companies are required to have a minimum of $500,000 in operating capital to list, compared to $7.5 million on the main board.

Companies that list on the platform are also required to release one year of audited financial results, compared to the two years required for bigger companies.

Additionally, the results must show a positive net profit or positive operating cash flow with gross profit margin of at least 10 per cent.

phnompenh post


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