FLC Faros transfer to UPCOM delayed

August 31, 2022 - 15:49
HNX said that it will only accept ROS shares of FLC Faros to trade on UPCOM exchange after official conclusion of authorities.
FLC Faros logo outside of its building. — Photo courtesy of FLC Faros

HÀ NỘI — The Hà Nội Stock Exchange (HNX) said that for the transfer of FLC Faros (ROS) shares' registration and depository to the UPCOM exchange, the review of the company's transaction registration documents can only be done after official conclusion of authorities and guidance of the management agency.

A representative of HNX said that in the initial investigation results from the authorities, the rise of the company's charter capital from VNĐ1.5 billion (US$63,945) to VNĐ4.3 trillion is prohibited according to regulations and is still under investigation.

Therefore, the northern exchange has not yet had basic information to determine FLC Faros' valid charter capital, its publicity and the volume of shares registered for trading.

Previously on August 25, the Hồ Chí Minh Stock Exchange (HoSE) issued a decision on delisting 567.6 million ROS shares due to serious violations of the issuer on disclosure information and in cases where the exchange or the State Securities Commission of Việt Nam (SSC) considers the necessary of the delist to protect investors' interests.

Under regulations, a company that is subject to mandatory delisting or voluntary delisting but still meet conditions to be a public company, has to register for trading on the UPCOM exchange.

On August 30, the Việt Nam Securities Depository (VSD) announced to transfer registration and depository data of ROS shares from HoSE to UPCOM. However, this is a technical handling on the VSD's system for delisted shares.

Before being delisted, ROS share price was at VNĐ2,510 a share, equivalent to the market capitalisation of more than VNĐ1.4 trillion.

After the increase of FLC Faros's charter capital, experts proposed Government agencies tighten control and inspection in listed companies' activities, and increases their roles in protecting investors' rights. — VNS