Campu Bank has joined at least three other banks in obtaining an operating license for Cambodia’s upcoming stock exchange due to launch by July next year.
In a statement on the company’s website released yesterday, the bank announced that the Securities Exchange Commission of Cambodia has granted it a license to carry out a securities underwriting and brokerage business.
“Campu Bank Securities was established to support and participate in the Cambodian Government’s initiatives to develop a capital market, thus enhancing the PBB Group’s [Public Bank Berhad] role in the financial services industry in Cambodia,” the bank said, adding that is had paid RM31.1 million, or about $10 million in capital requirements to the government.
The announcement by Campu Bank means that at least four such enterprises have been granted a license by the government, with an official announcement on the total number slated for Nov 2.
Acleda Bank, Canadia Bank and OSK Indochina Bank have also confirmed receiving licenses.
Banking officials have previously said that too many operators could result in an overcrowded market as business on the stock market is expected to be slow in the early days of trading.
But Phan Ying Tong, country head of Campu Bank, said that even if more than four companies have acquired licenses, there was little threat of overcrowding the market.
“When you look at the portfolio of the potential company it should be quiet big,” Mr Tong said. “It could mean that two companies would have to join hands to allow new capital to be listed.”
Still, Chhay Soeun, chairman of Acleda Securities Plc, which is owned by Acleda Bank, said that any more than four firms would probably be too many in the early stages of the stock market.
“To start I don’t think we should have too many companies,” he said. “The amount of trading [will] not be so much at the start.”
Ming Bankosal, general director of the SECC, declined yesterday to comment on the government’s decision regarding the number of companies that have been chosen.