|A Siam Brothers Vietnam warehouse. Investment in pre-listing companies promises big gains. — Photo cafef.vn|
HÀ NỘI – Recent returns have shown that investments in pre-listing companies promise big gains for investors who make bets on the firms with impressive business results and clear listing plans.
Speculations in recent listings such as budget airline Vietjet (VJC) and real estate developer Novaland Investment Group (NVL) have brought investors returns of over 40 per cent. Prices of these shares climbed 43-46 per cent in only one to two months of listing.
Investors who bought shares of Việt Nam National Petroleum Group (PLX) when it made the initial public offering earned profits of nearly 230 per cent.
PLX price soared to VNĐ49,000 (US$2.16) on its April 21, 2017 debut, far exceeding its IPO price of over VNĐ15,000 in 2011.
These return rates have outperformed the benchmark VN-Index, which has expanded just around 8 per cent this year.
Similar success is expected in the coming listings of Siam Brothers Việt Nam Joint Stock Company and Kido Frozen Food Joint Stock Company.
Siam Brothers Việt Nam, a Thai manufacturer for rope and net used for fishing, maritime transportation and agricultural sectors, will list 20.54 million shares with the sticker SBV on May 16 on the HCM Stock Exchange at the reference price of VNĐ40,000 a share.
The 60-year-old company holds a 40 per cent market share of the fishing lines. 90 per cent of the Vietnamese offshore fishing fleets are using specialized rope manufactured by Siam Brothers Việt Nam.
The company’s shares are trading around VNĐ45,000-48,000 apiece on the Over-the-Counter (OTC) market, a rise of 36.4 per cent over its IPO price of VNĐ33,000 in September 2016.
With a high dividend rate (mostly over 40 per cent in cash since 2011) and good profit growth (39 per cent in 2016 and 15-23 per cent in the next two years), its share prices are expected to increase when it starts trading this month.
Share prices of Kido Frozen Food (KDF) are also increasing on the OTC market, trading around VNĐ58,000-60,000 a share, up 11.5 per cent over its IPO price in March this year.
Kido Frozen Food is the country’s leading ice-cream market leader with a 35-per-cent market share in 2016. It reported after-tax profits of nearly VNĐ143 billion ($6.2 million) last year, a year-on-year growth of 85 per cent.
The company plans to debut shares on the HCM Stock Exchange in the third quarter of 2017. – VNS