Picasso City Garden’s upcoming initial public offering (IPO) is shaping up to be more than a routine listing—it could become a defining moment for the Cambodia Securities Exchange (CSX). The debut will test whether the local bourse can reignite investor enthusiasm or continue its struggle with stagnation.
Cambodia’s stock exchange has long faced challenges, marked by limited listings and sluggish trading activity. Now, the spotlight is on Picasso City Garden, a real estate developer preparing to list on the CSX Growth Board at USD 1.20 (KHR 4,800) per share. The timing aligns with the launch of the ACLEDA Sub-Bond 2.0, leaving many investors wondering whether these new offerings can inject fresh life into a market still grappling with weak momentum.
A Market Waiting for Its Moment
Since its inception more than a decade ago, the CSX has yet to achieve the traction seen in neighboring markets. According to the Securities Market Statistics report, only 11 companies have gone public, raising a total of USD 128.9 million. The exchange’s most active period was between 2018 and 2019, fueled by Cambodia’s rapid growth across construction, real estate, credit, and tourism. However, the pandemic disrupted this progress, halting much of the earlier momentum.
Even amid economic uncertainty, there were bright spots. In 2020, ACLEDA Bank (ABC) successfully went public, attracting significant investor attention. More recently, Cellcard and Mengly J. Quach Education joined the exchange in 2023, signaling continued interest but still short of the robust activity needed to strengthen the CSX’s foundation.
New Listings Amid Persistent Challenges
The Picasso City Garden IPO is part of renewed efforts to revitalize the stock market. The CSX currently operates two boards: the Main Board, which hosts nine companies, and the Growth Board, where Picasso will make its debut. The IPO offers 10 million shares—representing 20% of the company’s equity—and promises a guaranteed annual dividend yield of 7% for the first five years.
Picasso follows in the footsteps of JSL, which listed in 2022 at USD 0.467 (KHR 1,900) per share and has since seen its price rise by nearly 46% to KHR 2,770. That success suggests potential for real estate firms on the Growth Board. Still, questions remain: will Picasso sustain this upward trend or encounter the same obstacles that have restrained overall market growth?
A Mixed Economic Landscape
The broader economic environment adds uncertainty. The World Bank projects Cambodia’s GDP growth at just 4.0% in 2025, far below the double-digit expansion of past years. Foreign direct investment (FDI) has declined to USD 630 million, restricting capital flows to key sectors such as infrastructure and real estate. Although tourism is showing signs of recovery with 1.3 million arrivals so far, the figures remain below pre-pandemic levels. Meanwhile, non-performing loans have risen to 7.9% in the banking sector and 9.0% in microfinance, while inflation stands at 3.7%. For investors, these indicators suggest a cautious outlook—particularly for real estate-linked ventures.
Investor Sentiment and Market Outlook
Investor reactions to Picasso’s IPO could take several forms. On one hand, a soft economic backdrop and cooling property market may temper enthusiasm. On the other, the new listing could energize a market hungry for momentum—much like ACLEDA Bank’s listing did in 2020, when it attracted strong participation despite economic headwinds.
Market analyst Seang Bot offered a cautiously optimistic view, noting, “These IPOs could encourage other companies to list, boosting trading volumes and attracting new investors.” Yet he also warned that ongoing uncertainty and border tensions with Thailand might lead to more conservative investor behavior. “Despite these challenges, if Picasso City Garden can demonstrate solid growth potential and offer reliable dividends, it will likely find a pool of buyers willing to take the risk,” he added.
A Defining Test for CSX
Picasso’s IPO marks a crucial inflection point for the Cambodia Securities Exchange. Its success or failure could set the tone for the future of Cambodia’s capital markets in 2025 and beyond. A strong debut could restore investor confidence and usher in a new wave of listings. Conversely, if the IPO falters, the CSX may continue to lag behind its regional peers.
The next few months will determine whether Cambodia’s stock market can turn the corner or remain stuck in a prolonged wait for revival.
Source: Khmer Times