A garage of Hang Xanh Motors Service JSC (HoSE: HAX). — Photo haxaco.com.vn
Companies are trying to sell all treasury shares by the end of the year after they have made significant rallies to increase capital and cash holding.
Most local stocks rock-bottomed at their one-year lows in late March after the first wave of coronavirus hit Viet Nam and caused a market collapse.
The Development Investment Construction JSC (DIC Corp) also plans to complete selling 8.26 million treasury shares to increase funding for business activities.
The company bought back those shares in April 2020 for VND90 billion ($3.9 million) after its market value scaled down because of the COVID-19 pandemic.
DIC Corp shares (HoSE: DIG) fell as much as 24 per cent in March to the three-year low of VND10,350 per share.
The shares recovered a bit and moved flat around VND13,000 apiece from June 9 to September 3 before picking up.
Since September 3, the company shares have risen a total of nearly 75 per cent to VND22,700 on November 30.
The fourth largest listed company by market capitalisation Viet Nam Dairy Products JSC (Vinamilk) also wants to offload all 310,000 treasury shares.
As of September 30, Vinamilk earned VND15.5 trillion ($671.2 million) worth of net revenue, up 8.9 per cent year-on-year, with domestic market sale accounting for 85 per cent of the total figure.
Vinamilk shares (HoSE: VNM) hit the bottom twice this year in late March and late July when Viet Nam recorded surges in coronavirus infection cases.
Since March 23, Vinamilk shares have gained total 61 per cent to trade at VND109,100 apiece on November 30.
The management board of car retailer Hang Xanh Motors Service JSC (Haxaco) has approved a plan to sell all 134,270 treasury shares to raise its funding for business activities.
The shares were bought back in early 2019 at the average price of VND16,600 (US$0.72) apiece.
Haxaco shares (HoSE: HAX) dropped a total of 47 per cent between December 9, 2019 and March 31, 2020 to ground at the one-year low of VND8,640 per share.
Since then, the shares have gained as much as 113.5 per cent in eight months to touch VND18,450 per share – the highest price since October 11, 2019.
New-generation carrier Vietjet also offers 17.77 million treasury shares for sale as the company needs to raise its cash holding to raise the owners’ equity capital and assure profit growth. — VNS