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Listing outlook looks poor
The plans of many firms to list have been slowing down due to unfavourable market and business conditions, and several firms have even made a U-turn on their decision.
In early April, two businesses decided on taking back their listing procedures submitted to Ho Chi Minh City stock exchange (HSX).
Accordingly, Phu Hung Securities JSC took back procedures for listing 150 million shares it had submitted to HSX in November 2022 after the stock market turned unfavourable for stock listing and shareholder interests.
Meanwhile, Ton Dong A JSC took back procedures for listing nearly 115 million shares it had submitted in April 2022.
The company argued that headwinds in both domestic and global markets had badly affected the whole industrial sector, leaving the company unable to meet listing requirements as last year Ton Dong A incurred losses reaching $12 million.
In addition, Sacom Land JSC (SamLand) has revoked its listing plan on HSX, arguing that the plan now not suites to the company’s development in the upcoming period.
In fact, SamLand incurred $2.68 million losses in 2022, meanwhile it counted over $259,000 profit in 2021.
According to the company’s prospectus for its 2023 AGM, slated for April 21, SamLand estimates nearly $695,600 in losses this year.
Earlier, in early March the southern bourse (HSX) announced plans to stop considering listing procedures of An Giang Agriculture and Foods Import Export JSC as the company didn’t submit revised listing procedures upon HSX’s requirements.
A slew of other firms have submitted their listing procedures for quite a long time now, but until present, there are almost no movements from these firms towards finalising procedures
Some examples are Thanh Cong Securities JSC, which submitted procedures in March 2022 seeking to over 100 million shares, Quy Nhon Port JSC which submitted procedures in April 2022 seeking to list 40.4 million shares, and VCP Power and Construction JSC, which submitted procedures in June 2022, striving to list 83.79 million shares.
One of the targets for firms to go on the bourse is their expectations to be able to raise capital more comfortably to feed production and business needs.
The stock market, however, has exhibited less positive movement in the past year, with declining scores and liquidity.
In the first quarter this year, the average transaction value per each session just approximated $491.3 million, down more than half compared to a similar period in 2022.
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