Cars being used for driving tests at LPT. LPT has decided to postpone the stock listing plan to focus on its production and business plan. — Photo cafef.vn

HÀ NỘI — Lập Phương Thành Trading and Production Joint Stock Company (LPT) has sent a document to the Hồ Chí Minh City Stock Exchange (HoSE) to withdraw its registration for listing shares on the southern bourse.

Previously, the company submitted an application to list shares on HoSE on September 26, 2022. The number of registered shares for listing was 12 million, which equates to VNĐ120 billion in charter capital.

However, LPT has decided to postpone the stock listing plan to focus on its production and business plan.

This decision was made after the company's profit declined. In Q1 this year, revenue tripled to nearly VNĐ74 billion but the business suffered a post-tax loss of nearly VNĐ4 billion.

This loss was due to new restrictions governing driving instruction and licence issuance. According to the new Circular No. 04/2022/TT-BGTVT issued by the Ministry of Transport, training centres must equip and use electronic cabins. Because of the high cost and the lack of a regulated electronic cabin supplier, investing in this facility is considered a major problem.

The company needs more time to review and complete the application to meet listing requirements. Therefore, Lập Phương Thành company decided to postpone the listing plan to a more appropriate time.

In the first six months of this year, LPT stock was still trading below par value and it is increasingly trending towards historic bottoms. Ending the trading session on UPCom on Monday, LPT closed at VNĐ8,000 per share, roughly 8 per cent higher than the lowest price of VNĐ7,600 per share. — VNS