On June 24th, 2023, Cambodian Investors Corporation Plc (CiC Plc), the parent company of Accineur-Venture, and the Securities and Exchange Regulator of Cambodia (SERC) collaborated to organize a workshop on “Company’s Readiness for Securities Issuance” together in Phnom Penh at the Phnom Penh Hotel.
This workshop was presided over by H.E. Seang Thirith, Deputy Director General of the Securities and Exchange Regulator of Cambodia (SERC), as an honorable representative of H.E. Sou Socheat, Delegate of the Royal Government in Charge as Director General of the SERC, and Mr. Kim Sok Heng, Board of Directors and Chair of the Membership and Partnership Committee, Cambodian Investors Corporation Plc. And also attended by members in CiC Community, Investors, and another key stakeholders.
This workshop was organized to raise awareness about the securities issuance, the importance of listing on the securities exchange and readiness to enter the securities market.
H.E Seang Thirith has addressed that entering into securities market will lead the company to expand its potential for growth, become more sustainable and highly competitive in the market. He added that until now there are already 9 companies listed in securities exchange market and another’s 2 more will be listed in upcoming week. Additionally, He also expressed appreciation for CiC’s top Management and team for putting so much effort in organizing this workshop and expressed great confidence in the CiC company’s ability to eventually enter the securities market in upcoming years.
This workshop was organized by focusing on 2 topics: Corporate Governance for issuance securities company and Financial Statement & audit preparation.
Key Takeaways
I. Corporate Governance for securities issuance company
1. Corporate Governance for securities issuance company involve: Stakeholder, Internal auditor, External Auditor, Management staff and other key stakeholder (society, Government and suppliers)
2. The important of having good corporate governance:
- Long term growth / stable for company
- Attract potential human resource.
- increase competitiveness (building trust for investors)
- Mitigate company bankrupt and conflict of interest.
- Increasing securities price exchange.
3. What company need to be prepared in term of Corporate Governance before enter to IPO:
- Shareholder: company need to have protection for shareholder including register right, transfer right, enough information of company, voting right and dividend right)
- Board of directors: Have at least 5 board of directors and 1 independent board of director out of those 5 to enhance conflict of interest of company.
- Board meeting: In every board meeting it require to have official report to as the evidence of any deal and result of decision making among board of directors.
- Company’s secretariat: it must appoint a secretariat to handle all information of company and must be presence in every board meeting.
- Board Commitee
- Auditor: it requires to have internal auditor and external auditor in which recognize by SERC.
II. Financial Statement & Audit preparation
1. Criteria in term of accounting & audit for securities issuance company:
- Must be Plc Company
- Having proper financial report for last 2 years and certify by external auditor.
- Total equity with a set amount by SERC
- Net Profit with among of 750000$
2. key information’s in financial statement for pre securities issuance company including:
- Statement by board of directors
- Report from independent auditor
- financial report (Asset, Total equity and liability)
- Profit and loss report
- Cash flow report (cash flow operating, cash flow investing, cash flow financing)
- Report of Capital Change
- Note: Cash flow, Loan, Contracts, financial tools, Breach of agreement and any conflict.
- Others key Financial Ratio
3. The important of financial report including:
- Easy to raise more fund from diverse source of fund such as Bank, Private equity and IPO
- Having Proper budget plan for company
- Risk Mitigation: able to minimize risk that can be occurs in any situation.
- Enhance confidence from key shareholder and potential investors
- avoiding any punishment
- avoiding of providing negative opinion from independent auditor.
4. Currently there are 9 independent external auditor firm that certify by SERC including: PWC, Deloitte, EY, KPMG, BDO, Crowe, Grant Thornton, Bakertilly and Reachs the Professional Stance.