Companies set for share listings

Saturday, Aug 30, 2014 11:31

A worker at Van Dien Fused Magnesium Phosphate Fertilizer Joint Stock Company in Ha Noi packages products for export. The stock market will expand substantially with more listings. — VNA/VNS Photo Hoang Hung
HA NOI (Biz Hub)— The number of companies filing to list shares on the stock exchange would rise significantly next year, deputy general director of the HCM Stock Exchange Tran Thi Anh Dao said.

One of the most anticipated listings will be from banks which will be forced to list in 2015 under the direction of the Prime Minister in an effort to strengthen transparency in the banking sector.

According to Dao, many banks wanted to make share offering but had to postpone their plans due to procedural difficulties such as high bad debt ratios which makes them unqualified for listing, or if they were involved in a restructuring process such as a merger or acquisition.

"With regard to these cases, their listings may be delayed but ‘reluctant' banks that do qualify to float must list shares on the stock exchange next year," Dao told Dau Tu Chung Khoan (Securities Investment) newspaper.

She said Techcombank had proposed a listing plan at its annual shareholders' meeting this year, while others such as Nam A Bank, VPBank and LienViet PostBank were considering suitable times for their debuts.

As well as banks, other companies including Thong Nhat Production and Investment Joint Stock Company, Van Dien Fused Magnesium Phosphate Fertilizer Joint Stock Company and Thin Viet Securities Joint Stock Company are likely to be approved for listing by the end of this year.

The exchange this month received two initial listing registration documents from Quang Binh Import and Export Joint Stock Company and Southern Fertiliser Joint Stock Company.

In the first half of this year, the southern exchange received only seven auctions and three new listings, a very modest number compared to the previous years.

On the Ha Noi Stock Exchange, several companies are also preparing to list shares by the year-end including C.E.O Investment Joint Stock Company and Viet Thanh Electric Cable Corporation.

According to market insiders, the market size will expand substantially with more listings as both stock exchanges are actively taking measures to compel public companies to join the stock market.

Recent new listings of Mobile World Joint Stock Company (MWG) and Central Hydropower Joint Stock Company (CHP) have seen significant growth and this should act as a confidence for companies to float their shares on the stock exchanges.

Raising capital through the stock market has also shown positive signs, with total money raised through this channel increasing to VND127 trillion (US$6 billion) in the first six months of this year. — VNS

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