Cambodia Investment Review
Picasso City Garden Development Plc has completed its initial public offering on the Cambodia Securities Exchange (CSX) Growth Board, raising approximately USD 5.88 million, well below its original USD 12 million fundraising target.
The real estate developer officially listed on December 10th 2025 following a regional roadshow and subscription period that attracted partial investor participation. While the transaction adds another listed issuer to Cambodia’s relatively young capital market, the outcome has highlighted ongoing challenges around valuation, liquidity, and investor appetite—particularly for property-linked listings.
Partial Subscription Reflects Cautious Investor Sentiment
Picasso City Garden Development had offered 10 million shares at USD 1.20 per share (, implying a target raise of USD 12 million and a post-IPO valuation of approximately USD 72 million. The final subscription level, however, reached less than half of that amount, resulting in proceeds of roughly USD 5.88 million.
Read More: Picasso City Garden Development IPO Explained: Inside the 2025 CSX Listing, Valuation, and Dividend Plan
The company’s official listing ceremony proceeded as scheduled at CSX headquarters, attended by senior officials from the Ministry of Economy and Finance, the Securities and Exchange Regulator of Cambodia (SERC), and CSX leadership. In official remarks, CSX reiterated the role of the stock exchange in supporting long-term capital formation and business growth, even amid challenging market conditions.
From a regulatory standpoint, the listing complied with CSX Growth Board requirements, and Picasso City Garden Development became one of the limited number of real estate companies to access public equity financing in Cambodia.
Mr. Darren Teng, Chairman of Cambodia Securities Plc. & Picasso City Garden Development PlcValuation Concerns and Property Market Backdrop
Market participants point to valuation sensitivity as one of the key factors behind the muted investor response. Prior to the IPO, the company disclosed a book value of approximately USD 5 million, with projections that this would rise to USD 17 million following a fully subscribed offering.
At the same time, Cambodia’s residential property market—particularly in Phnom Penh’s mid- to high-end condominium segment—continues to face elevated supply levels and slower absorption rates. This has weighed on investor sentiment toward real estate developers, especially those with flagship projects still in development.
Against this backdrop, investors appear to have been selective, balancing the attraction of a fixed 7 percent annual dividend commitment against broader concerns about market conditions and capital efficiency.
Use of Proceeds and IPO Cost Impact
According to the company’s IPO disclosures, the original USD 12 million target was intended to be allocated as follows:
• Picasso Sky Gemme project: USD 3.6 million
• Working capital: USD 2.4 million
• Repayment of company loans: USD 4.8 million
• IPO and related expenses: USD 1.2 million
With the IPO raising approximately USD 5.88 million, the impact of fixed listing and transaction costs has become more pronounced leaving a total of $4.68 million and not fully covering the repayment of company loans. In practical terms, the net capital retained after IPO expenses is materially lower than initially planned and is broadly equivalent to less than half of the originally intended funding allocation for the Picasso Sky Gemme project alone, before considering working capital needs or debt repayment.
Market observers note that this dynamic is a common structural challenge for partial IPOs on developing exchanges, where regulatory, advisory, and underwriting costs are largely fixed regardless of the final subscription level.
Strategic Implications Post-Listing
Despite the lower-than-expected capital raise, Picasso City Garden Development retains the benefits of being a publicly listed company, including improved transparency, access to capital markets, and enhanced brand visibility.
However, analysts suggest the company may need to recalibrate its capital deployment strategy, potentially prioritising phased development, revisiting debt management plans, or seeking supplementary financing through loans or strategic partnerships.
The company’s flagship Picasso Sky Gemme project in Phnom Penh’s BKK1 district remains central to its brand positioning, but the reduced net proceeds are likely to influence development timelines and funding sequencing.
“Picasso Sky Gemme”, the proposed 52-storey residential tower in Bkk1 (2025). Credit – CIRBroader Signal for Cambodia’s Capital Market
The outcome of the IPO underscores both progress and constraints within Cambodia’s equity market. While the CSX Growth Board continues to provide a pathway for domestic companies to access public funding, investor caution remains high amid liquidity constraints and sector-specific risks.
For policymakers and market participants, the listing highlights the importance of deepening institutional investor participation, aligning valuation expectations with market realities, and improving overall market depth.
As Cambodia’s capital market continues to mature, partial subscription outcomes such as this are likely to shape more pragmatic approaches to IPO pricing, deal structuring, and investor engagement in future listings.
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