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Listed companied do not want to change bourse or raise capital
Under the new regulations, the companies now listing at the HCM City Stock Exchange (HOSE) must have the chartered capital of at least VND 80 billion, or they will have to shift to be listed at the Hanoi Securities Trading Centre (HASTC). However, listed companies do not want to change bourse or raise capital.
Under the new regulations, the companies now listing at the HCM City Stock Exchange (HOSE) must have the chartered capital of at least VND 80 billion
There are more than 40 companies listing on HOSE that have the chartered capital of less than VND 80 billion, which means that the 40 companies will have to list on the Hanoi bourse if they cannot raise the chartered capital to the required level.
In fact, shifting to list on other bourse has occurred already. However, companies only shifted from the Hanoi bourse to HCM City bourse, while no company moved their listing shares from the HCM City bourse to Hanoi. Therefore, the listing on Hanoi bourse is considered to be an unwilling move.
In order to be able to keep listing at HOSE, businesses have no other choice than raising the chartered capital to VND 80 billion.
Several companies have shown their determination to stay in HCM City, including DIC, an investment and trade joint-stock company. DIC’s board of directors has approved the plan on raising the chartered capital to VND 80 billion in order to be eligible to stay in HCM City.
TTC, a tile production company, which now has VND 60 billion in chartered capital, has sent a dispatch to the State Securities Commission, asking for an extension of the capital increase until the end of June 2009.
However, analysts have warned that it is very difficult to raise chartered capital at this moment, when the stock market remains gloomy. A lot of share issuance plans to increase capital have been canceled. Therefore, the companies, who do not want to change bourse, and cannot increase capital, simply do one thing: wait for the decision by the market watchdog to delay the capital increase deadline.
The director of a company now listing its shares at HOSE said that the company’s business plan does not mention the capital increase as 2009 has been predicted to be a very difficult year, while the company will only focus on production. He said that the company once planned to raise capital, but it still does not know how to use the capital most effectively in case the company can successfully issue shares.
Huy Nam, a securities expert in HCM City, said that there is no need to set up standards for listing on HCM City or Hanoi bourses.
The existence of the standards have led to a feeling that the Hanoi bourse is inferior to HCM City bourse, and that shifting to be listed on Hanoi bourse is kind of degrading.
Nam said that enterprises should be assessed in terms of business efficiency instead of chartered capital, which only shows the scale of enterprises.
Nam added that enterprises now choose the bourse to list their shares just by feeling, and that he knows many enterprises, which are listing shares on Hanoi bourse, while their shares are still being traded well, and their business performance has been going smoothly.
Tien phong
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