CamEd Open Access Repository

ACLEDA: A New Major IPO In Cambodia

Varabott Ho  and Chakara Sisowath
CamEd Business School

Faculty Publications
2020, pp. 1 – 25


The term IPO or Initial Public Offering means the company is “going public”, the non-listed company is going to “sell their stock or share” to the public. The public can be individuals or institutional investors. Acleda has decided to join the Cambodia Securities Exchange1 main listed companies such Phnom Penh Water Supply Authority (PWSA), Grand Twins International (GTI), Phnom Penh Special Economic Zone (PPSP), Phnom Penh Autonomous Port (PPAP) and Sihanoukville Autonomous Port (PAS). It is expected to be listed and traded on the Cambodian local stock exchange (CSX) in May 2020. ACLEDA is one of the leading commercial banks in Cambodia. The strong growth in the Cambodian economy, fueled by favorable demographics and productivity growth will support the bank’s expansion in the medium term. But why is ACLEDA going public? And what would be the valuation of the dominating bank in the country? Nowadays, most of the valuation is based on the “secret” combination of “DCF” Model (Discounted Cash Flow) rather than “Dividend Discount Model” (DDM), and the utilization of the market multiples. Our study is one of the first contributions to the ACLEDA IPO Valuation literature. The authors will discuss and look at various research methodologies and research methods that are commonly used by researchers in the field of valuation. The chapter starts by providing a comprehensive introduction of Acleda Bank. The next section compares and differentiates the two comparative and financial approaches, followed by the last section on the comparative outcome with recommendations. The secondary data sources have been used in this research, and the actual data collection and data analysis method is described along the sections. This real case study research combines grounded theory finance research analysis based on archival data through the Internet, and multiple company visit/roadshows and discussions with the Cambodian licensed underwriters.

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