Stock market eyes eventful IPOs by state enterprises

Experts forecast that stock market launching from state own enterprises will be very eventful from now until the end of this year due to the Government’s instruction to drastically equitize 432 state own enterprises in 2014-2015.

On September 18, the Southern Airports Services Company (Sasco) conducted an Initial Public Offering (IPO), which is said very successful. Share sales yeilded over VND601 billion (US$28.36 million).

A total of 216 investors registered to purchase more than 145 million Sasco shares, fivefold the offered volume.

Vietnam Vegetable Oils Industry Corporation (Vocarimex) also launched its IPO on June 25.

Yesterday at the Ho Chi Minh City Stock Exchange (Hose), 87 investors ordered nearly 111 million shares accounting for 90.6 percent of offered shares in Vinatex Vietnam Textile and Garment Group (Vinatex)’s IPO.

Notably, foreign investors purchased 55 million shares accounting for half of the offered.

Hose said that 21 IPos have been launched by state own enterprises there since early this year. Of these, Vinatex’s IPO marketed highest share volume.

Investors are now interesting in a November IPO of the national flag carrier Vietnam Airlines, which is expected to mobilize VND1.5 trillion (US$ 70.6 million).

In the first eight months this year, VN-Index increased 25 percent, market capitalization rate went up 40 percent and the number of transactions hiked 80 percent over average rates last year, said Chairman of the National Security Commission Vu Bang at a Gateway to Vietnam Conference recently hosted in HCMC.

Indirect capital invested in the stock market increased 2.5 times over the same period last year. Capital mobilization via IPOs added up 40 percent, he said.

Mr. Bang predicted that the Vietnam stock market will be more attractive with coming IPOs by state own companies in 2014-2015.

By Minh Huy – Translated by Hai Mien

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