The journey of building Cambodia’s capital markets comes with both challenges and opportunities, and the need for a vision centred on sustainable growth. In an exclusive interview with B2B Cambodia, Buth Kerady, Founder and CEO of Cambodia Securities Plc., expressed her optimism about the Kingdom’s securities market and how she sees it playing a pivotal role in the country's economic future.
Founding Cambodia Securities Plc.
Before establishing Cambodia Securities Plc., Kerady was involved in setting up Chengfung Investment and spent nearly 10 years in the management of the financial banking industry, serving as the Senior Management Director of the Post Bank of Cambodia. In this role, she was responsible for liaising with corporate legal representatives in China, Taiwan, Singapore, and Hong Kong to promote international business.
With a background in banking, investment management, and capital raising, Kerady laid the groundwork for founding Cambodia Securities Plc. with her partners. She emphasised that the goal was to foster the development of Cambodia's securities markets, which she believes is essential for facilitating the long-term growth of the Cambodian economy.
Kerady noted that with a dedicated team and by leveraging international expertise, Cambodia Securities Plc. integrates and navigates the complexities of the Kingdom’s evolving capital market.
Cambodia Securities Plc. is the first professional securities firm in the Kingdom with a wholly-owned license, focusing on investment banking as its core business following the reform and opening of the securities market. The company provides underwriting services, brokerage services, asset management, trust services, and more.
Benefits Of Capital Market Financing In Cambodia
Kerady said that raising capital through the securities markets offers Cambodian businesses a vital alternative to traditional bank loans. This access to funds is crucial for scaling operations and investing in infrastructure, innovation, and workforce development.
“However, one major challenge is the limited awareness and understanding of capital markets among many Cambodian businesses. Many firms are hesitant to list on the exchange because they are unfamiliar with the process or fear the increased transparency and regulation,” she said.
Kerady added that Cambodia Securities Plc. is striving to bridge the knowledge gap by providing professional guidance throughout the IPO process. Another challenge she noted, however, is low liquidity in the market, which can deter investors.
Her company has worked to help promote the capital markets through forums, mutual visits, contract signing, and engaging in strategic cooperation to enhance Cambodia's capital market and its integration with the international market.
Collaboration With The Regulator – SERC
Kerady said that the Securities and Exchange Regulator of Cambodia (SERC) has made significant strides through various Memoranda of Understanding (MOUs) aimed at enhancing the capital market framework.
“Although [market] participation may be low now, I see this as part of the natural development of an emerging market. It takes time to build confidence and create a vibrant ecosystem. We must continue to foster collaboration among government bodies, financial institutions, and private enterprises to overcome existing barriers and drive engagement,” she said.
By working with the regulator, Kerady said Cambodia Securities Plc. is introducing innovative products such as bonds and green finance instruments.
In August 2024, Cambodia Securities Plc. hosted the 'First Capital Market Summit Forum' in Phnom Penh, which facilitated dialogue among local enterprises, regulatory bodies, and international investors.
Cambodia’s Securities Plc.'s Pre-IPO Fund
Cambodia Securities Plc. will soon launch Pre-IPO funds that will invest in local enterprises, particularly small and medium-sized enterprises (SMEs) in key sectors such as manufacturing, technology, and services.
“These funds are designed to provide capital to promising companies that are on the verge of going public but need additional support to get there,” she said.
A Bright Future Ahead
Looking ahead, Kerady believes that Cambodia is on the verge of a "golden decade" for its capital markets. The growing interest from local enterprises in raising capital through securities indicates a shift in mindset.
“Over the next three years, I expect a wave of new listings driven by businesses seeking to scale and expand their operations. This influx will boost market liquidity, attract more investors, and create a positive feedback loop for market growth,” she concluded.