Few Vietnamese Firms Raise Fund Via Stock Market in Q1
Only three out of four companies were able to raise capital via the Ho Chi Minh City Stock Exchange (HOSE), Vietnam’s main bourse, in the first quarter of this year as the market remained gloomy, which discouraged investors to pour money in.
These firms, however, sold only 16.6 million shares compared to a total of 28.9 million shares put up for auction.
Another listed firm had to cancel its share issuance as no bidders registered to buy the shares, the exchange said.
“The market has plummeted, so no companies were interested in raising fund via the stock market channel,” said Nguyen Viet Hai, CEO of ACB Securities Co.
Pham Linh, CEO of Vietnam International Securities Co. (VIS), said his firm only underwrite the issuances of listed firms that are prestigious and issue a relatively small volume of shares as investors are now very prudent with their investment.
In the first three months, the State Securities Commission approved the issuance of shares worth total VND2.3 trillion in par value. The amount of shares sold was not available as firms are allowed to carry out auctions within 90 days.
Last year, listed firms sold 95.45 million shares out of 260.9 million offered via HOSE. (Saigon Economic Times, CafeF)
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