Lap Phuong Thanh Trading and Production Joint Stock Company (LPT) has sent a document to the Ho Chi Minh City Stock Exchange (HoSE) to withdraw its registration for listing shares on the southern bourse.

Previously, the company submitted an application to list shares on HoSE on September 26, 2023. The number of registered shares for listing was 12 million, which equates to VND120 billion in charter capital.

However, LPT has decided to postpone the stock listing plan to focus on its production and business plan.

This decision was made after the company's profit declined. In Q1 this year, revenue tripled to nearly VND74 billion but the business suffered a post-tax loss of nearly VND4 billion.

This loss was due to new restrictions governing driving instruction and licence issuance. According to the new Circular No. 04/2022/TT-BGTVT issued by the Ministry of Transport, training centres must equip and use electronic cabins. Because of the high cost and the lack of a regulated electronic cabin supplier, investing in this facility is considered a major problem.

The company needs more time to review and complete the application to meet listing requirements. Therefore, Lap Phuong Thanh company decided to postpone the listing plan to a more appropriate time.

In the first six months of this year, LPT stock was still trading below par value and it is increasingly trending towards historic bottoms. Ending the trading session on Monday, LPT closed at VND8,000 per share, roughly 8 per cent higher than the lowest price of VND7,600 per share. — VNS