The Cambodia Securities Exchange (CSX) has ended its two-year wait for its second-ever listing after Taiwan’s Grand Twins International garment factory finally landed on Monday following repeated delays.
The listing of Grand Twins, one of Cambodia’s largest garment makers with clients including athletic brands Adidas and Salomon, was the first private company to publicly sell its shares on the CSX since state-backed Phnom Penh Water Supply Authority floated in April 2012.
The listing, which was initially scheduled on May 8 after a US$19.3 million initial public offering (IPO), has been put off twice due to hold ups in regulatory approval.
CSX Chairman Hean Sahib claimed that the listing of Grand Twins reflects a milestone for the bourse, which could potentially become a catalyst for the impoverished Southeast Asian nation’s economic growth.
However, the listing of Grand Twins was not well received in the market. Its share price closed at 9,220 Cambodian riels (US$2.28) on its debut, down 5% from an opening price of 9,700 riels and 4% below its IPO price of 9,640 riels. On Tuesday, it bounced back by more than 4% to its float price.
Stephen Hsu, chief executive at Phnom Penh Securities, the underwriter of the Grand Twins offering, said a lack of confidence in the market could be turned around, while issues such as a lack of liquidity and gaps in securities regulations needed time to improve.
The listing of Grand Twins has not arrived at the best time for Cambodia’s garment industry. In January, a national strike against demanding a doubling of minimum wage ended up with police crackdown in which at least four people were killed.