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Listing becoming fashionable
Analysts have said that a new movement of companies listing on the bourse has kicked off. Forty-seven enterprises have reportedly applied to list on the Hanoi and HCM City bourses.
Vietinbank’s Chairman Pham Huy Hung has affirmed that the bank will hit the bourse in July 2009. Bao Viet and Vietcombank have announced they will list on the bourse this year. Smaller companies have also been preparing for listing. Forty-seven enterprises have reportedly applied for listing, and some have received approval in principle.
The golden time for listing
On June 1, Vietcombank finalised its list of shareholders. If everything goes smoothly, 112,285 million Vietcombank shares (9.28 percent of chartered capital) will be listed on HOSE in June.
Le Thi Hoa, a member of the Board of Directors of Vietcombank, said that the bank has fulfilled all necessary procedures for the listing, while other things will depend on HOSE. If Vietcombank cannot list in June, it will list in July.
On May 25, Bao Viet Group applied to list 573 million shares at HOSE. Bao Viet has the chartered capital of 5,730 billion dong, of which the state holds 77.54 percent and foreign strategic shareholders 10 percent.
Le Quang Binh, Chairman of Bao Viet Group, said that as the stock market has recovered, it is now the most suitable time for listing. In fact, Bao Viet planned to list in 2008, but the plan was delayed due to the stock market’s falls and the global financial crisis.
Entering bourse at what cost?
Coming up with a market debut price is always a contentious issue. In general, prices are only announced the day just before the day of listing.
Hoa from Vietcombank said that the bank’s debut share price will be set after considering the share market prices of transactions in the last few months on the OTC market. Moreover, assessments of the inner strength of Vietcombank and prices of other bank share items will also be considered.
Hoa said that the debut price will not be overly high and will reflect investors’ expectations of the bank.
On the OTC market, Vietcombank shares are now being traded at 45,500-45,800/share. The price levels are much lower than the IPO average price at 107,572 dong per share, but relatively higher than the bank’s share prices several months ago.
Meanwhile, Bao Viet share prices are hovering around 22,000-23,000/share, while the average IPO price was 73,910 dong per share in 2007.
It happened in the past that some companies announced debut prices at overly low or high levels which investors did not agree with. As a result, the shares of the companies increased or decreased continuously in the subsequent months.
However, this has not happened recently. HOSE has asked a consultancy company to provide proof about share prices on the OTC market in order to set debuts prices that are closer to the market prices.
VietNamNet, DTCK
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