Vietnamese businesses still reluctant to list shares

The number of companies which listed shares or are planning to list shares in 2019 remains very modest.

In the first half of the year, only seven companies listed shares at the HCM City Stock Exchange (HSX), nine at the Hanoi Stock Exchange (HNX) and 44 on UpCom. The figures were 23, 11 and 119 companies, respectively, in 2018, and 33, 22 and 268, respectively, in 2017.

Vietnamese businesses still reluctant to list shares



Analysts noted that the enterprises that began listing shares at HSX were mostly the ones that had moved from UpCom. GEG of the Gia Lai Electricity JSC, entered on September 19.

With charter capital of VND2.038 trillion, GEG has helped increase the amount of listed shares at HSX by 203.8 million units. Before moving to HSX, GEG was available on UpCom and traded well there with the average trading volume of 600,000 shares per trading session in the first eight months of the year.

In the first half of the year, only seven companies listed shares at the HCM City Stock Exchange (HSX), nine at the Hanoi Stock Exchange (HNX) and 44 on UpCom. The figures were 23, 11 and 119 companies, respectively, in 2018, and 33, 22 and 268, respectively, in 2017.

Prior to that, HSX also received two companies which moved from HNX and UpCom – Dabaco Vietnam (DBC) and Kosy (KOS).

 


In 2019, Dabaco plans to increase its charter capital through three ways – share private offering, convertible bond private offerings and bond issuance.

In Q3 only three enterprises applied for listing shares from the beginning at HSX. These include medium sized enterprises, namely Hanoi Plastics (VND344 billion) which registered to list 34.4 million, Hoang Ha Hai Phong Paper (VND180 billion) and Kien Giang Construction Investment Consultancy Group (VND500 billion).

Observers said there won’t be many new names registering to list shares on the bourse in Q4. The most noteworthy name is Becamex (BCM) which plans to move from UpCom to HSX.

In the first half of the year, Becamex completed the issuance of 15,000 5-year non-convertible bonds worth VND1.5 trillion. The nominal interest rate offered for the first year is 10.5 percent.

The total amount of BCM put into transactions at UpCom is 1 billion shares and BCM is among eight shares with highest capitalization value on the bourse.

Securities investors are looking forward to seeing equitized enterprises listing their shares on the bourse which would make the ‘goods’ on the stock market more diversified. However, equitization has been going very slowly. This is partially because of the stock market decline which makes it more difficult to sell shares. In the first half of 2019, only six enterprises were equitized.

Analysts said enterprises don’t want to list shares on the bourse at this time because of the weak stock market. Many enterprises plan to list shares in 2019, but have delayed the plans.

The failure of capital mobilization campaigns in the stock market has discouraged not only listed companies, but non-listed companies as well.

Linh Ha 

Framework mooted for stock listing

Framework mooted for stock listing

The Politburo recently issued a resolution paving the way for favourable conditions to attract and choose high-quality foreign direct investment into Vietnam. 

Finance ministry to announce over 750 firms delaying listing

Finance ministry to announce over 750 firms delaying listing

A list of 755 enterprises failing to register to list on the stock market after equitisation will soon be announced.

 
 

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