|The headquarters of Alphanam Group. The Alphanam Investment Joint Stock Company has received approval to delist shares from the stock market. — Alphanam Photo
HA NOI (VNS)— The HCM City Stock Exchange approved Alphanam Investment Joint Stock Company (ALP)'s delisting request, making its last trading day December 30.
The company has nearly 192.5 million shares on the market, equivalent to charter capital of VND1.925 trillion (US$90.4 million).
Since debuting in 2007 with the initial listing volume of 30 million shares, ALP was considered a good mid-cap share. It closed the first trading day at VND63,500 each, a high price at that time.
However, after two consecutive years of losses, the company decided to delist in order to focus on long-term development, a decision advocated by shareholders in May 2013.
Speaking to shareholders, an ALP spokesperson said the company's focus was on mergers and acquisitions, targeting loss-making companies whose core businesses were in line with ALP. Therefore, in the short term, the company would record losses from these subsidiaries in its financial statements. The delisting would ease pressure to complete short-term goals, giving the company more resources to concentrate on long-term targets.
The company reported an after-tax loss of nearly VND145 billion ($6.8 million) in 2012 and VND206 billion ($9.7 million) in 2013. HCM City's exchange put ALP stocks under control and halted trading on April 11 this year. Four days later, the exchange allowed trading of the stock again but kept it under control. Margin trading was not permitted.
Despite projecting a net profit of VND5 billion ($234,742) for 2014, the company incurred a loss of VND9.5 billion ($446,000) in the first nine months of the year. If it continues to post losses by the end of this year, the delisting will become compulsory.
In a filing to the exchange, ALP attributed the loss to short-term bad debts incurred by its subsidiary companies amid the gloomy real estate market.
The company plans to develop new products and services, targeting essential consumer goods like food and beverages, and expects to see profits again next year. — VNS