New Investment Opportunities with More Listings and Share Sales

HSTC can be double the total value of its stock exchange in this month. (Photo: T.C)

Ho Chi Minh City Securities Trading Center (HSTC), in July, is likely to double the total value of its stock exchange from the current value of VND 4,200 billion, said the State Securities Commission (SSC). Several new companies will list, significantly boosting the supply side of the market.

VND thousand billions of par values to list

In recent months, SSC has permitted the listing of more than 10 enterprises and the market watchdog also announced their listing debuts.

In the upcoming July 11, the bourse will welcome 10.71 million shares (corresponding to VND 107.18 billion in par value) of the Binh Minh Plastics Joint-stock Company (BM Plasco) under the trading code of BMP. BM Plasco is the second company in the plastic industry, after the Da Nang Plastic Joint-stock Company (DPC) to float on the stock market.

On July 12, nearly 190 million shares of the Sai Gon Thuong Tin Commercial Joint-stock Bank (Sacombank) are to be traded in the bank's first session on HSTC with the total listing value reaching VND 1,899.5 billion.

Meanwhile, the Vinh Son – Song Hinh Hydro Power Joint-stock Company (VSH), after delisting in Ha Noi bourse, will officially list on HSTC this July 18. With 125 million shares (equivalent to VND 1,250 billion of chartered capital), VSH will be the third biggest company on the bourse.

The Vinafco Joint-stock Corporation (VND 55.75 billion in chartered capital) of the sea-freight industry also plans to list on July 24.

Earlier this month, 1 million shares of a telecom equipment company - the Vien Lien Joint-stock Company (Unico), and 5 million shares of the Song Da Urban & Industrial Zone Development and Investment Joint-stock Company (Sudico) made pretty successful debuts and have been surging in recent trading sessions.

Besides, SSC also approved the flotation of those companies below: the Petroleum Materials Joint-stock Company – Comeco (VND 34 billion in chartered capital), the Interfood Shareholding Company (VND 206.33 billion), the Chang Yih Ceramics Joint-stock Company (VND 90.48 billion), the Petrolimex Tanker Joint-stock Company – Pjtaco (VND 19.37 billion), the Sai Gon Maritime Joint-stock Company – SMC (VND 15 billion)...

The foodstuff industry is one of leading in number of listed companies as Bibica, Canfooco, KinhDo, Vinamilk and Interfood. (Photo: T.C)

Moreover, several other enterprises are, also approved in principal to list, waiting for the finalization of some final procedures before listing, including: the Vidipha Central Pharmaceutical Joint-stock Company (VND 40 billion), the Imexpharm Pharmaceutical Joint-stock Company (VND 44 billion), the SMC Trading Investment Joint-stock Company (VND 37.4 billion), the Full Power Joint-stock Company (VND 100 billion), the Thanh Thanh Glazed Tile Joint-stock Company and the Khanh Hoa Power Joint-stock Company (VND 152.52 billion)...

Listing new share offers

In order to take advantage of the recent “stock fever” from February to May, almost all listed company hurried to propose to shareholders their new development plan along with share offer to raise more fund.

To date, after completing all the procedures, ten millions of additional shares will be available for investors, partly boosting the supply of the market.

The Bien Hoa Confectionery Corporation (Bibica), which currently has the chartered capital of VND 56 billion, will raise its capital more than 1.5 times with the sale of 3.16 million additional shares. The plan was approved by SSC on July 5.

The Phuong Nam Cultural Joint-stock Company (PNC), whose chartered capital is VND 30 billion, will issue an additional 1 million shares.

The Khanh Hoi Import Export Joint Stock Company (Khahomex) also raises 10% of its chartered capital with 3.3 million additional shares.

The An Giang Fisheries Import & Export Company (Agifish) already has a detailed plan to issue 3.5 million shares, divided into 3 phases and started by the end of June.

Besides, the Chau Thoi Concrete Corporation No. 620 (BT6) is also permitted in principal by SSC for the plan to issue more than 4.11 million shares, divided into 2 phases.

Shareholders are interested in development plans of listing companies. (Photo: T.C)

The 3 “big brothers” on the stock market – the Refrigeration Electrical Engineering Company (ReeCorp), the Viet Nam Diary Products Joint-stock Company (Vinamilk) and the General Fowarding & Agency Corporation (Gemadept) – also plans to issue 10 million, 15.9 million, and 1.27 million shares respectively.

Meanwhile, on July 7, the Cable & Telecom Materials Joint-stock Company (Sacom) also intends to list an additional 63,019 shares in the 2nd phase of issuance.

Previously, on July 3, the Seafood Joint-stock Company No. 4 (TS4) just listed 1.5 million extra shares, doubling its chartered capital.

As for the Taya Electric Wire & Cable Joint-stock Company (TYA), the firm also floats 3.15 million shares, used to pay dividend in 2005 on July 5 before paying an additional 15% dividend in cash by the end of this month.

Though not yet officially floating, Sacombank said it will auction 30 million shares to investors right after its debut on the exchange.

Even the Viet Nam Securities Investment Fund (VF1), which is a closed fund, also wants to mobilize more investment, raising its capital size from VND 300 billion to VND 500 billion in order to take advantage of the fast moving of the stock market. With the permission, VF1 can initiate the issuance within this month.

Therefore, the additional “goods” have met the expectation of investors, especially foreign ones. Viet Nam’s stock market, from now to the end of the year, promises to be very exciting.

Foreign investment funds, which have invested in the market in the past or are currently carrying on their plan, will find many new investment opportunities.

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By Tuong Chau

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