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VietNamNews

Firms lose stock market listing fears

Update: October, 04/2014 - 10:22
HANOI (VNS) — A number of public companies have recently come to Viet Nam's stock exchanges to raise capital. A while back, a number of them decided to delist shares.

Last September, the Ha Noi Stock Exchange welcomed four new enterprises: the multi-industry CEO Group (CEO), Tri Viet Management Investment (TVC), Nam Dinh Foodstuff and Agricultural Products Export (NDF) and Petrolimex Installation No3 (PEN).

Thong Nhat Production and Investment (GTN) also debuted on the HCM City Stock Exchange yesterday, with the prices of its shares jumping by 20 per cent.

"Listing our shares helps our operations become transparent and assists us in raising capital and developing relations with other companies," Pham Thanh Tung, Tri Viet chairman, told the Dau tu chung khoan (Securities Investment) publication.

Following the listing of its shares, Tri Viet will improve its services for its clients, which are public companies, he said.

According to other company directors, this is the right time to offer shares to the public, as the stock market is reviving while bank funding remains hard to get.

Apart from fund raising, the increase in share value also encourages them. Companies that have listed recently recorded impressive growth, such as CEO, whose share prices increased by around 50 per cent in just four sessions. Notably, NDF shares soared by more than 100 per cent since its first trading day last September 12.

A hoard of companies are expected to list in the fourth quarter, including mineral companies Bac A, Gia Lai and Visaco, electric cable companies Viet Thai and Cadivi, as well as Thien Viet Securities, Southern Fertiliser, Quang Binh Import and Export and Van Dien Fused Magnesium Phosphate.

Meanwhile, some investors have expressed doubts that manipulation was behind the recent price increases.

The Ha Noi Stock Exchange expects listed companies to take the initiative to make themselves transparent. Transparency has for long been seen as the primary element to enhance corporate value and protect investors.

The stock exchange said in a conference yesterday that more transparency meant less manipulation. "A higher degree of publicity makes manipulators cringe, as the market response could be extremely harsh," a stock market official said. — VNS



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