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| Shoes produced at the Thuong Dinh Footwear Company. The firm received an offer that was five times it's initial price. — VNA/VNS Photo Ngoc Ha |
HA NOI (VNS) — The Ha Noi Stock Exchange (HNX) received VND1.28 trillion (US$58.7 million) in the second quarter of this year from organising 21 auctions to sell stakes in State-owned enterprises (SOEs).
This marks a year-on-year increase of 7.3 per cent.
Shares of 12 of 21 companies, totaling 61 million, were totally sold out. In June alone, 9 out of 12 SOEs organised initial public offerings (IPOs), selling all the shares for VND716.5 billion ($32.85 million), accounting for 56 per cent of the total value in the second quarter.
Some of the auctions attracted widespread investor interest. The auction of the Vinacomin Power – a subsidiary of the Vietnam National Coal-Minerals Industries Group (Vinacomin), drew 259 investors, while that of Bac Giang Water Company Limited attracted 268.
State-owned companies put up a total of 421.9 million shares in the second quarter. Some of them offered a very large number of shares, including Vinacomin Power with 236.3 million and Vinacomin's Minerals Holding Corporation (Vimico) with 46.5 million.
For several SOEs, investors wanted to buy more shares than what they ended up getting.
Firms like the Ha Noi Book and Commerce Company Limited (Vietbook), Thuong Dinh Footwear Company and Trang Thi Trade and Services Company received purchase offers that exceeded the number of shares by four to 14 times.
Investors were also willing to pay high prices for stakes in some SOEs. The Trang Thi Trade and Services Company received the highest offer of VND82,000 per share, eight times the initial price and Thuong Dinh Footwear Company received an offer that was five times the company's initial price.
On June 30, the State Capital and Investment Company (SCIC) organised an IPO to sell its stakes in the Joint Stock Machine and Technology Gelimex Company (Gelimex).
Gelimex successfully sold 2.18 million shares worth VND18.56 billion ($851,380) at VND8,500 per share. — VNS