Viet Nam’s Infrastructure Development and Construction Corporation (Licogi) has obtained approval from the Ha Noi Stock Exchange (HNX) to trade 90 million shares on the Unlisted Public Company Market (UPCoM), under the stock code LIC.

Some 31.5 million shares offered to strategic shareholders are under restricted transfer until December 2020 and another 234,100 shares are also subject to transfer restrictions.

Licogi will start trading on the UPCoM on June 5, at a starting price of VND4,900 (22 US cents) per share.

In April 2015, the corporation sold nearly 21.3 million shares during its initial public offering (IPO) at a starting price of VND10,000 per share.

The equity auction saw positive results, with the entire offering being sold to 106 individual investors. It brought in more than VND212.8 billion and increased the company’s charter capital to VND900 billion following the equitisation.

Since then, the company has not raised charter capital.

By March 16, 2017, Licogi had three major shareholders -- Ministry of Construction with 40.71 per cent of charter capital, Khu Dong Real Estate Investment JSC holding 35 per cent and Gia Cuong Investment Company Limited owning 22.24 per cent of capital.

In 2016, Licogi reported a net loss of VND293.4 billion, a negative cash flow of VND142 billion and total short-term debt in excess of current assets by VND803.5 billion. These issues indicate uncertainties, which may lead to increasing suspicion on the ability of continuous operation of the corporation. — VNS