Cambodia Investment Review
Cambodia Securities Exchange (CSX)-listed Royal Group Phnom Penh SEZ Plc (PPSP) will double its outstanding shares through a 1-for-1 bonus share issue, a move designed to improve trading liquidity while leaving the company’s overall market value and shareholders’ proportional ownership unchanged.
The company confirmed it had received regulatory approval for the additional listing on June 12, 2026, following shareholder authorization granted during an Extraordinary General Meeting held in December 2025.
Under the plan, PPSP will issue more than 71.5 million new ordinary voting shares, with existing shareholders receiving one bonus share for every share currently held.
Investors must be recorded on the company’s shareholder register by July 28 to qualify for the distribution.
Ex-Bonus Date Set for July 27
PPSP has designated July 27 as the ex-bonus date, meaning investors purchasing shares on or after that date will not be eligible to receive the bonus shares.
To reflect the doubling of shares in circulation, the stock’s reference price will be adjusted to approximately half of the previous closing price on the ex-bonus date. Shareholders who sell their holdings on July 27 will remain entitled to the bonus shares, provided they owned the stock before the ex-bonus date.
The new shares are scheduled to be allotted on August 3, with trading on the Cambodia Securities Exchange expected to begin on August 4.
A Move to Increase Market Liquidity
Unlike a capital raising, a bonus share issue does not generate additional funds for the company. Instead, it increases the number of shares available for trading, typically lowering the share price and making the stock more accessible to a broader range of investors.
While the transaction does not change PPSP’s market capitalization or each shareholder’s percentage ownership, the larger share base is expected to improve trading liquidity by increasing the number of shares available in the market.
Bonus share issues are commonly used by listed companies to improve marketability, particularly where a higher share price may discourage smaller retail investors. By increasing the free float and reducing the per-share trading price, companies often seek to encourage greater trading activity and broaden their investor base.
A Decade on the Exchange
PPSP became one of Cambodia’s pioneering listed companies when it debuted on the Cambodia Securities Exchange in May 2016, raising capital at an initial public offering (IPO) price of KHR 2,860 per share.
Five years later, in December 2021, Inter Logistics (Cambodia) Co., Ltd., a subsidiary of Royal Group, acquired the company’s 45.09% controlling stake from founding shareholder Oknha Lim Chhiv Ho, making Royal Group the largest shareholder under the leadership of Neak Oknha Kith Meng.
The acquisition was completed through a privately negotiated transaction, with the purchase price not publicly disclosed. At the time, however, PPSP shares were trading at around KHR 2,000 per share, implying the controlling stake was worth approximately US$16 million based on the prevailing market price.
Ahead of the bonus share issue, PPSP was trading at around KHR 2,100 per share, leaving the stock approximately 25-30% below its IPO price, although broadly in line with where it traded when Royal Group acquired its controlling stake in 2021.
Following the 1-for-1 bonus issue, the theoretical ex-bonus share price is expected to adjust to around KHR 1,010 per share, reflecting the doubling of shares in circulation rather than any change in the company’s underlying market value or shareholders’ proportional ownership.
For existing investors, the bonus issue does not create additional value on day one. Instead, it doubles the number of shares held while maintaining the same ownership stake in the company. Over the longer term, the increased share count is expected to enhance liquidity, improve accessibility for retail investors and support more active trading on the Cambodia Securities Exchange.
