VietNamNet Bridge - President of Vicostone Artificial Stone JSC Ho Xuan Nang is expected to become the fourth richest stock millionaire with stock asset value of VND6 trillion.

President of Vicostone Artificial Stone JSC Ho Xuan Nang

Analysts have said Vicostone shares, or VCS, could bring the bring the highest profits to investors this year.

President of Vicostone Artificial Stone JSC Ho Xuan Nang is expected to become the fourth richest stock millionaire with stock asset value of VND6 trillion.

VCS is one of a few shares that increased strongly in price in the first 10 months of the year. The share was hunted by investors after the company twice paid a high dividend of 20 percent, gave bonus shares once and paid dividends in shares once.

VCS now has the market price of VND131,000 per share which means a capitalization value of VND7.86 trillion.

VCS price has increased by 10 times in the last three years thanks to impressive business performance.

Official reports show that Nang only holds 513,417 VCS, or 0.86 percent of the company’s charter capital.

Most VCS shares are being held by Phuong Hoang Xanh A&A JSC (Phenikaa) – 43.5 million shares, or 72.49 percent of the charter capital. Nang represents the shareholder.

Phenikaa is a private company owned by Ho Xuan Nang and his wife. Nang holds 90 percent of capital, while his wife – Pham Thu Hang – holds 9.9 percent.

As such, if counting the amount of VCS held by Phenikaa, Nang will own, directly and indirectly, the amount of VCS worth VND5.8 trillion. 

The figure is high enough to help Nang outstrip two deputy presidents of Vingroup – Pham Thu Huong and Pham Thuy Hang -- to jump to the fourth position on the list of the richest stock millionaires.

An analyst commented that in modern times, when more and more business people hold shares through private companies. The calculation of their stock value based only on shares under their names will not truly reflect their actual assets.

In similar cases, most of the shares of Nguyen Duc Tai, president of The Gioi Di Dong (phone distribution chain), Nguyen Duy Hung, president of SSI (securities company) and Le Phuoc Vu, president of Hoa Sen Group have been transferred to their private companies.

Nang is well known among the business community for the merger and acquisition deal he arranged.

In August 2014, the extraordinary shareholders’ meeting announced a restructuring plan of the company under which Vicostone became a subsidiary of Phenikaa.

By the end of August 2014, Phenikaa had completed the purchase of 58 percent of stakes and become the holding company of Vicostone. By the end of September 2014, Vicostone had bought 20 percent of circulating shares as treasury shares.

On December 31, 2014, Nang said he owned 90 percent of Phenikaa’s charter capital. As such, he now holds control over both Phenikaa and Vicostone.

Luong Bang