Several months after it was listed on Cambodia’s stock exchange in a bid to raise expansion capital, the country’s largest Special Economic Zone (SEZ) recorded a nearly 50 percent drop in quarterly revenue.
The Phnom Penh Special Economic Zone’s (PPSEZ) revenue fell to about $2.8 million in the third quarter, down from about $5.2 million in last year’s third quarter, a decline of 46 percent, according to a statement released on Friday.
“The revenue from selling land has decreased, which results in the fall of the total revenue and the profit of the firm,” the company, one of only two private firms listed on the Cambodia Securities Exchange, said in the statement.
The company was listed on the exchange in May with the goal of raising capital for a planned SEZ in Poipet City, a trading hub in Banteay Meanchey province.
On its listing day, more than 57.8 million shares were issued, 24,078 shares traded hands in transactions totaling more than $17,000 and the stock price closed at $0.71 per share.
After the revenue announcement on Friday, the company’s share price fell by 10 riel, or a fraction of a cent, on minimal trading on both Monday and Tuesday, according to the stock exchange’s latest data.
The PPSEZ was developed to create the infrastructure necessary to promote industries other than the garment sector. Today, it offers 81 companies—dealing in a range of sectors from electrical parts to food and beverages—incentives for doing business in Cambodia.
PPSEZ said in its statement that it planned to increase its revenue from leasing and services, but did not elaborate.
Stock exchange spokesman Lamum Soleil said that because the PPSEZ’s fluctuations in share prices and trading volume were still small, “it is too early to say that the fall of the stock’s revenue has impacted its share prices.”
He added that the minor movements may mean that most investors are holding for the long term.
“So, let’s wait and see,” he said.