How can SMEs go public?

The securities industry in Cambodia has grown steadily since its inception, with nine companies now listing their equity securities on the Cambodian Securities Exchange (CSX).

To encourage further development, the Securities and Exchange Regulator of Cambodia (SERC) has set up a growth council for small and medium-sized companies to take advantage of initial public offerings (IPOs).

What is a listed company?

A listed company means a public limited company or authorized entity that has offered or made a public offering of securities.

Why does a company go public?

An Initial Public Offering (IPO) is a way for companies to raise capital from the general public to increase business performance through IPO, which is an alternative to traditional options such as loans banking.

An IPO offers many benefits to the issuer – in addition to raising funds from the general public for future development and strengthening the capital structure – including obtaining sources of long-term funding, incentives taxes and building a strong reputation.

It can also enhance public visibility, which can lead to attracting more attention from potential investors, contributing to the sustainability of the business through stronger corporate and internal governance, attracting and retaining employees, and increasing the proactivity towards government regulations.

How to prepare an SME for a public offer?

After observing the growth potential of small and medium-sized enterprises (SMEs), the Securities and Exchange Regulator of Cambodia (SERC) decided to establish a growth board to enable SMEs to raise funds through public offerings.


The securities industry in Cambodia has grown steadily since its inception, with nine companies now listing their equity securities on CSX.

To go public, SMEs must go through four major steps:

• Preparation: The company must present good corporate governance (a management structure in accordance with the regulations in force) and accounts for the last financial year audited in accordance with the law and regulations.

The company’s business activities must be in the public interest and its operations sustainable. An IPO team will be set up to verify the due diligence of the company.

• Feasibility list: The company must comply with the listing requirements of the CSX Listing Rule in order to apply for feasibility listing with CSX.

• Application for IPO application: The company must prepare and submit its application to the SERC for the IPO.

SERC will assess the application and all other relevant materials, particularly disclosure materials, before granting approval.

After obtaining the approval and registration of the information document with the SERC, the company will proceed with the subscription of the securities.

After the completion of the subscription of the securities, the company must submit the report on the result of the subscription to the SERC.

• Official listing on CSX: The company must complete an application form with CSX to be officially listed in accordance with the regulations in force.

Prepared by: Securities and Exchange Regulator of Cambodia,

Securities Issuance Control Department,

E-mail: [email protected].
Telephone: 023 885611.

About Barbara J. Ross

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