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September auctions prove a success

Update: October, 03/2015 - 10:12
In August, 70 per cent of a total 57 million shares offered in the seven auctions were sold, garnering a total return of VND518.3 billion ($23 million) for the State.— Photo expert.ru
HA NOI (VNS)  — Five initial public offerings (IPO) and four auctions of State-owned shares held on the Ha Noi Stock Exchange in September concluded with 100 per cent of stakes for sale sold, the northern exchange reported.

A total of 54.8 million shares were sold in the nine auctions in September, bringing in a combined value of almost VND603 billion (US$26.8 million). The number of shares investors registered to buy also reached 77.6 million shares, surpassing the total shares put up for sale by 42 per cent.

In August, 70 per cent of a total 57 million shares offered in the seven auctions were sold, garnering a total return of VND518.3 billion ($23 million) for the State.

The five IPOs in September belonged to the Vietnam National Vegetable, Fruit and Agricultural Product Corporation (Vegetexco), Vietnam National Tea Corporation (Vinatea), Hanoi Livestock Breeding Company Limited, Hanoi Trading and Investment Company Limited and Central Pharmaceutical Company No 1.

Unlike the public sales in the previous month, these IPOs attracted many investors, particularly agribusinesses, with the bid volume often doubling the ask volume.

Total of value of shares sold in the five IPOs reached over VND473 billion ($21 million), of which Vegetexco and Vinatea saw the highest value of VND278 billion ($12.4 million) and VND119 billion ($5.3 million), respectively.

Four other auctions, organised to help the State make divestment in four companies, including Ha Tinh Pharmaceutical JSC, Drilling and Mining Technical Service JSC, Hon Gai Mechanical JSC and The Sugarcane and Sugar Corporation No 1 JSC, also had high investor participation. Notably, the bid volume in the Drilling and Mining Technical Service JSC's public sale was four-fold higher than the volume of shares put up for sale.

Total value of these sales reached almost VND130 billion ($5.8 million).

As of September 30, six businesses have registered to hold auctions on the Ha Noi's exchange in October, including two IPOs and four auctions of State-owned shares, including Ha Noi-based Transport Hospital. — VNS


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