IPOs attract thousands of investors

Thousands of investors have registered to attend Initial Public Offerings (IPO) of state-owned enterprises.

Ben Thanh Rubber Company is stably operating after equitization (Photo: SGGP)

Hanoi Stock Exchange organized nearly 20 IPOs since early this year. The government’s target is to equitize 432 companies by 2015.

The number of businesses launching IPOs accounts for two-thirds in the first quarter. Most businesses are in traffic and construction fields including Transport Engineering Design Inc (TEDI), Viglacera Corporation and Thang Long Construction Corporation.

Vietnam Motors Industry Corporation offered 51 million shares, of which only 1.5 million accounting for 3 percent has been sold.

Companies with the most investors registered to attend IPOs were Civil Engineering Construction Corporation No.4 with 668 investors, Viglacera with 608 investors, and Vietnam Motors Industry Corporation with 126 investors.

Less than 30 percent of businesses sold all of their shares.

TEDI offered 2.6 million shares, yet the number of valid orders was 6.6 times higher with 17.17 million. Some investors were willing to pay up to VND 24,000 per stock, 2.4 times higher than initial price.

From 2011-2013, 99 enterprises have been equitized, according to the Steering Committee for Enterprise Renovation and Development.

The Ministry of Transport accounts for 50 percent of companies equitized in 2011-2013. The ministry has dismissed directors for their unwillingness to equitize.

The Government has applied drastic measures to obtain the target to equitize 432 in 2014 and 2015.

A resolution for laying responsibility was issued in March. Local authorities, ministries, and council chairmen will be held accountable if equitization runs behind schedule.

Some experts believe the State should hold a certain percentage of stocks in the equitized enterprises to ensure effective operation.

There is no need for the State to hold shares, said Minister of Transport Dinh La Thang. This will create advantageous condition for the companies to call on investors.

By Quang Minh – Translated by Hai Mien

Other news

Most view

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

185 leading domestic & in't enterprises join in VN ETE 2018

The Vietnam Exhibition of Electrical Technology and Equipment (Vietnam ETE 2018) and the Exhibition of Products, Technologies for Energy Saving and Green Power (ENERTEC EXPO 2018) yesterday kicked off in HCMC’s Saigon Exhibition Convention Center in district 7.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

SAS profits VND 118bln

The Southern Airports Service Joint Stock Company (Sasco) which is listed under code SAS on the Unlisted Public Company Market (UPCoM), announced its second quarter’s financial report with net revenue at VND 634.5billion, an increase of 14 percent compared to last year.