The Hàm Phú 2 Solar Power project in Bình Thuận Province's Hàm Thuận Bắc District, is built by Gia Lai Electricity JSC (HoSE: GEG). The company debuted on the Hồ Chí Minh Stock Exchange on September 19. — Photo geccom.vn
HÀ NỘI — The number of new listing firms on the two local bourses has remained modest in the first nine months of the year.
As of the end of September, 10 companies debuted on the Hồ Chí Minh Stock Exchange (HoSE). Most of them moved from the Unlisted Public Company Market (UPCoM).
Nine companies debuted on the Hà Nội Stock Exchange (HNX) in the January-September period.
Some of the companies making their debuts in the first three quarter included Gia Lai Electricity JSC (HoSE: GEG), Dabaco Group (HoSE: DBC) and Kosy JSC (HoSE: KOS).
The number of companies having new to the two local exchanges in the past nine-months was quite futile compared to the previous two years.
In 2018, total 33 companies started listing shares on HoSE and 22 firms came on the HNX.
Other companies are also planning to move their shares to the two local exchanges.
Those companies include Investment and Industrial Development JSC (UPCoM: BCM), Hà Nội Plastics JSC (UPCoM: NHH) and Kiên Giang Construction Investment Consulting Group (OTC: CKG).
Listing on the two exchanges is among the best ways for companies to raise capital, serving their business activities, and help increase the firm’s creditability to investors.
According to Nguyễn Như So, chairman of Dabaco JSC, moving the company from UPCoM to HoSE helps strengthen its status in comparison with other businesses in the consumer staples sector.
The company plans to increase its charter capital by selling private shares and issuing private convertible bond notes.
Some businesses are likely to break the promise of bringing their businesses onto the stock exchanges made in this year’s annual shareholder meetings.
Lê Miên Thụy, general director of Ricons Construction JSC, said the company plans to list shares on the stock exchanges in the last quarter of the year.
The underwriting firm expects construction companies will produce high profit reports in the October-December period and that would draw interest from investors, he said.
However, the listing will very much depend on the market trading conditions, which have been unfavourable for shareholders, the general director said.
The market trading conditions have remained difficult for any firms to thinking about listing shares on the HoSE and HNX, business executives said.
As of September 30, the benchmark VN-Index on HoSE struggled to gain a total of 12.6 per cent.
Meanwhile, the HNX-Index on HNX increased by only 1.2 per cent in the same period.
Market trading liquidity remained modest on the two exchanges as investors have been worried about key international events such as the US-China trade war and about the global economic recession.
They have been seeking alternative investments, which are safer and less risky than local stocks, such as gold and government bonds. — VNS