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Listing season begins
Experts say that the high season of listing on the bourse is set to begin, with many companies expecting to enter trading floors in July in both Hanoi and HCM City.
On June 25, two millions shares of Media Joint Stock Company No 1 and 7.5mil shares of Song Da 4 Joint Stock Company appeared at Hanoi bourse. One day later, 10mil shares of Coc Sau Coal Joint Stock Company also made its debut at the Hanoi Securities Trading Centre (HASTC). More than ten companies are queuing to get licences from HASTC to list on the Hanoi bourse.
In HCM City, Mirae has got approval in principle to list 7.23mil shares, and it is going to list at the HCM City Stock Exchange (HOSE) on an auspicious day.
Other companies, from big ones, including Vietcombank, PetroVietnam Finance Company and Vinaconex (construction and import-export corporation), to smaller companies, have confirmed their determination to list on the bourse, despite the falls of the stock market.
The companies say that listing on the bourse is their long-term business plan, and that they don’t want to delay the listings any longer, thus breaking the promises they made before to shareholders.
According to the Electricity of Vietnam, its member companies, which have made IPOs already, namely Ninh Binh Thermopower Plant, Ba Ria Thermopower Plant and Thac Mo Hydropower Plant, are following necessary procedures to list on the bourse on schedule, the condition of the market notwithstanding.
Nguyen Thanh Hoan, Director of Underground Works Company, which is listing at HASTC under the code of CTN, said that the company plans to raise its chartered capital to over VND80bil and shift to list on the HCM City bourse. Moreover, the company is moving ahead with its plan to bring some of its members to the Hanoi bourse.
Previously, companies listing on the bourse all wanted their share prices at the debuts to be equal or higher than the IPO average prices. However, they have changed their mind.
A representative of a big company which is going to list on the HCM City bourse said that the company’s debut price will be defined after considering the prices on the OTC market and stake book value.
Nguyen Hoa Binh, Chairman of Vietcombank, in a recent interview with the local press, also said that the bank IPO’s average price would not be the only factor that determined the bank’s debut price.
Tran Anh Dao, Head of the Listing Management Division under the HOSE, said that not many applications had been submitted this year for listing on the bourse, just 1-2 applications a month. However, Dao said that the number of applications will increase considerably in July.
HOSE knows that a lot of companies are ready for listing and they will join the market as soon as there are favourable conditions. During the shareholders’ meeting season (April and May), many companies approved plans to list on the bourse. Considering that it takes enterprises three months on average to fulfill necessary steps to list on the bourse, the enterprises will fulfill the procedures between July-September.
“The market has been falling down and the number of private listing companies has been falling too. However, companies which have long-term business plans are still determined to list on the bourse,” Dao said, adding that HOSE will create the most favourable conditions for companies to list.
Analysts have foreseen that the end of 2008 and beginning of 2009 may be a time when big corporations gather on the stock market, which may help change the VN Index. A lot of investors may have to quit the market in the difficult period, but many others will stay, becoming more experienced.
VNN
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