After two years of choosing between owning the stock listed on their local bourse and not owning it, Cambodian traders now have a third option. Few are interested in taking it.
Brokers believed a successful listing for Grand Twins International (Cambodia) PLC, a Taiwanese-owned garment maker that completed a $19.3 million initial public offering last month, would help the stock market to grow. Instead, the shares fell in their trading debut.
Grand Twins’ poor performance, analysts say, could set back the government’s plans to build up its stock market. Many Cambodians have dismissed the effort as a vanity project in an underdeveloped economy that still is grappling with rural poverty and fragile industrialization.
Grand Twins’ share price ended at 9,220 Cambodian riel ($2.28) on Monday, down 5% from an opening price of 9,700 riel and 4.4% lower than its IPO price of 9,640 riel. Only 3,101 Grand Twins shares—worth about $7,382 combined—changed hands in the 3½ hours that the market was open, according to the Cambodia Securities Exchange.