The Cambodia Securities Exchange (CSX) will move from its current home inside Canadia Tower to a French colonial-era building currently being renovated on Street 106, Finance Minister Keat Chhon said on Monday.
The new building, which will be finished in 2014 at the cost of $4 million, will provide a permanent home for Cambodia’s bourse, which still only has one listed company since its launch in July 2011.
“I believe that building the new stock market sends an important message to local and international investors to join the stock market,” Mr. Chhon said at a ceremony marking the building’s renovation.
“Both state and private companies have made the decision and are preparing to list on the stock exchange. And I see that there are many private companies that are watching our stock exchange before deciding. This event proves the step-by-step progress of the stock exchange,” he continued.
He said that the three-story building in Daun Penh district’s Wat Phnom commune would consist of the original French-colonial building as well as some additional sections that will be added on.
The government holds 55 percent of the CSX, while Korea Exchange, which runs the bourse in Seoul, owns the rest.
Hong Sok Hour, chief executive of the CSX, said the location would give the bourse a boost when attracting investors, and would encourage more companies to list.
“We need to have our own building to attract investors and so companies trust in our stock market,” he said. So far, the state-owned Phnom Penh Water Supply Authority is the only company to list on the bourse, though the Sihanoukville Autonomous Port and Telecom Cambodia are also preparing to list.
When the CSX launched, the Water Supply Authority’s shares soared by 47 percent on the first day of trading, but then slowly slumped back toward the initial public offering of 6,300 riel, or about $1.57.
The price per share ended Monday on 6,200 riel, about $1.55, a price from which it had not moved since January 9.