A leading local private school and learning institution is eyeing to be listed on the Cambodia Securities Exchange (CSX) by the end of the year to raise capital for its expansion.
Mengly Quach, CEO and founder of Mengly J Quach Education Ltd., the parent body of American Intercon Institute and American Intercon School (AIS), told Khmer Times on Friday that he wanted his company to be listed on the CSX to attract both local and foreign investment in the country’s education sector.
Mengly said his schools have grown fast and now were well recognised across the country but he lacked capital to expand them to take in more students. “In the next three to five years, I plan to have three more branches and the schools would focus on technical, vocational, science, health and engineering subjects to make Cambodia’s workforce more skilled and for our industries to compete better globally,” he said. “To expand, we need to raise at least $6 million to $10 million for each branch. We cannot do it ourselves, so we need to list on the CSX to raise capital from the public.”
Mengly said his company would finalise all the procedures to be listed on the CSX by the end of the year, adding that he was waiting first for the government to follow through on its plans to grant full tax exemption to local private schools and learning institutions.
“If we are listed now on the CSX, we will lose,” said Mengly. “We are waiting for approvals from the government, Securities and Exchange Commission of Cambodia and the Cambodia Securities Exchange on the tax incentive to the private sector, in particular those companies operating in the education sector.”
Lamun Soleil, director of the market operations department at the CSX, welcomed Mengly J Quach Education’s move to seek CSX listing. “It augurs well when we have more private companies seeking to join the CSX. It reflects the private sector’s trust in the country’s stock exchange,” he said. “The CSX is currently small and we need more companies to join it so that investor confidence can be built up. When one private company is listed, it will attract other companies.”
Soleil said Mengly’s schools had a good track record and its shares should perform well on the CSX when listed. “When a good company joins the market, it would provide benefits to investors,” he added.
Svay Hay, president and CEO of ACLEDA Securities, told Khmer Times that he knew of Mengly J Quach Education’s plans to get listed on the CSX. “As far as I know, they have to first complete all their financial statements and make their tax declarations. They need to do it at least three to six months before they are listed,” he said.