Acleda Bank becomes sixth listed firm on Cambodia’s bourse

The Cambodia Securities Exchange in Phnom Penh

The Cambodia Securities Exchange (CSX) saw its sixth listing on May 25 as shares of Cambodia’s largest commercial lender, Acleda Bank, started trading unperturbed by the current economic uncertainty caused by the coronavirus pandemic.

Acleda Bank is joining a garment factory, a utility firm, two state-owned ports and a special economic zone operator listed on the CSX which opened in 2011. The bank had assets of $6.18 billion as of the end of last year and reached a market capitalisation of $1.75 billion during the initial public offering (IPO), nearly three times that of the five other listed firms at the CSX together.

Acleda’s listing has been promoted as a “People’s IPO,” encouraging retail investors and the general public to participate according to their financial ability, the bank said.

The bank was launched in 1993 and has since transformed from a non-profit, non-governmental organisation through different stages as a microfinance institution and a specialised bank to a commercial bank as of today. By numbers from September last year, Acleda is the largest bank in Cambodia in terms of gross loans that stood at $3.61 billion and total equity of $899 million, and the second largest in terms of total assets of $6.09 billion and total deposits of $4.24 billion.

A “new chapter” for Cambodia’s financial market

Acleda’s president and group managing director In Channy said that about 2,500 public investors became its shareholders at the start of trading, “opening a new chapter” for Cambodia’s financial sector.

He downplayed the risks of debuting on the CSX during the pandemic.

“We saw that our investors did not hesitate because of the trust in Cambodia, in Acleda Bank and in relevant authorities,” In Channy said, adding that “If we were concerned, we would not have listed today.”

The CSX, which is being jointly operated by the Cambodian government and the Korea Exchange, has seen lackluster trading in the past due to few private investors, a lack of financial literacy and distrust in institutions in the country and a dearth of eligible companies.

The Cambodia Securities Exchange in Phnom Penh The Cambodia Securities Exchange (CSX) saw its sixth listing on May 25 as shares of Cambodia's largest commercial lender, Acleda Bank, started trading unperturbed by the current economic uncertainty caused by the coronavirus pandemic. Acleda Bank is joining a garment factory, a utility firm, two state-owned ports and a special economic zone operator listed on the CSX which opened in 2011. The bank had assets of $6.18 billion as of the end of last year and reached a market capitalisation of $1.75 billion during the initial public offering (IPO), nearly three times that...

The Cambodia Securities Exchange in Phnom Penh

The Cambodia Securities Exchange (CSX) saw its sixth listing on May 25 as shares of Cambodia’s largest commercial lender, Acleda Bank, started trading unperturbed by the current economic uncertainty caused by the coronavirus pandemic.

Acleda Bank is joining a garment factory, a utility firm, two state-owned ports and a special economic zone operator listed on the CSX which opened in 2011. The bank had assets of $6.18 billion as of the end of last year and reached a market capitalisation of $1.75 billion during the initial public offering (IPO), nearly three times that of the five other listed firms at the CSX together.

Acleda’s listing has been promoted as a “People’s IPO,” encouraging retail investors and the general public to participate according to their financial ability, the bank said.

The bank was launched in 1993 and has since transformed from a non-profit, non-governmental organisation through different stages as a microfinance institution and a specialised bank to a commercial bank as of today. By numbers from September last year, Acleda is the largest bank in Cambodia in terms of gross loans that stood at $3.61 billion and total equity of $899 million, and the second largest in terms of total assets of $6.09 billion and total deposits of $4.24 billion.

A “new chapter” for Cambodia’s financial market

Acleda’s president and group managing director In Channy said that about 2,500 public investors became its shareholders at the start of trading, “opening a new chapter” for Cambodia’s financial sector.

He downplayed the risks of debuting on the CSX during the pandemic.

“We saw that our investors did not hesitate because of the trust in Cambodia, in Acleda Bank and in relevant authorities,” In Channy said, adding that “If we were concerned, we would not have listed today.”

The CSX, which is being jointly operated by the Cambodian government and the Korea Exchange, has seen lackluster trading in the past due to few private investors, a lack of financial literacy and distrust in institutions in the country and a dearth of eligible companies.

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