A greater number of investors participated in the equity auctions held
on the Hanoi Stock Exchange in April, the northern bourse reported.
Five auctions were organised on the Hanoi Stock Exchange in April,
including three initial public offerings (IPOs) of State-owned
enterprises, one auction of share purchase rights, and one share
offering in the form of direct negotiation with investors present at the
auction.
The exchange reported an increase in the number of
participants, with an average of 103 investors per auction, a rise of
more than 39 percent, as compared to March.
As many as 310
million shares were offered for sale, of which 24.1 million were sold
out, bringing in a turnover of 241.8 billion VND (11.2 million USD).
The
auction of more than 5 million share purchase rights of Tran Phu
Electric Mechanical Joint Stock Company, owned by the Hanoi People’s
Committee, was the most successful, with the bid volume being 7.4 times
higher than the offering rights. A few investors registered to purchase
at a price of 90,000 VND (4.17 USD), which was 5.2 times higher than the
starting price.
All the rights were sold, earning the Hanoi People’s Committee 298.5 billion VND (13.8 million USD).
Moreover,
of the three IPOs, the equity auction of the Infrastructure Development
and Construction Corporation (Licogi) of the Ministry of Construction
saw the highest results, with the entire offering being sold to 106
individual investors. It brought in more than 212.8 billion VND (nearly
10 million USD), higher than the expectation of 126.7 billion VND
(almost 6 million USD).
Of note, auctions of equity of those
companies under the Vietnam National Coal Mineral Industries Group
(Vinacomin) witnessed poor results.
Vinacomin Power Holding
Corporation sold only 1.2 million shares of a total offering of nearly
236.4 million shares, while Vinacomin Minerals Holding Corporation sold
just 1.3 million shares of the 46.7 million shares up for sale.
The
sale of shares of Cam Ranh Port Limited Liability Company saw only one
participating investor, selling just 307,000 shares of the total
offering of 5.69 million shares.
According to the Hanoi Stock
Exchange auction plan, three equity auctions will be held in May—one for
Saigon Posts and Telecommunications Service Joint Stock Corporation on
May 14, the Hanoi Cadastral Survey Company Limited on May 19, and
Vinacomin Viet Bac Mining Industry Holding Corporation Limited on May
27.-VNA