InfoQuest (Sept. 17, 2019) -- Cambodia and Thailand's Securities Exchange and Commission (SEC) yesterday signed a memorandum of understanding (MoU) on mutual cooperation for capital market development through cross-listing, dual listing and depository receipt offering, according to Ms. Ruenvadee Suwanmongkol, secretary general of Thailand's SEC. The move aims to push forward securities offerings, connecting the Cambodian and Thai capital markets. This will pave the way for capital market cooperation between the two countries. It also supports Thailand's 20-year (2018-2037) national strategy to promote the country as a regional fundraising hub.
Following this deal, according to Ms. Ruenvadee, it is expected that Thai and Cambodian enterprises will be able to realize dual listing on their capital markets this year.
"The MoU marks goodwill between Thailand and Cambodia's SECs to develop capital market products for Thai and Cambodian securities issuers for sale in each country. It also supports business expansion, enhances liquidity and provides a greater opportunity to access funding sources.
It is expected that a corporation from Cambodia will become the first foreign company listed on the Stock Exchange of Thailand and selling shares to Thai investors, after Thailand's SEC regulation on cross-border equity offering became effective in 2015. In addition, depository receipt is another product of mutual concern. The interconnection of capital markets in both countries will help increase business opportunities and create wealth for regional economies", said Ms. Ruenwadee.
The MoU is the result of a fruitful discussion held during the visit Thailand's SEC payed to Cambodia's SEC in August 2019, and also expands the scope of cooperation from the framework signed by both organizations in 2014. The deal also covers the establishment of a task force to work on the process of implementing cross-border equity offerings and the issuing of debt receipts. It also contains guidelines for those who wish to offer securities both in Thailand and Cambodia.
Mr. Sou Socheat, director general of Cambodia's SEC, said the MoU testifies to the long-standing close relationship between the two organizations, and offers an additional option for Cambodian and Thai operators to raise funds, which will facilitate them to expand business, enhance liquidity and increase investor base. "This MoU will be a good model for regional cooperation for capital markets in the region", he said.
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