Declines of the stock market over past several months have slowed down listing plans of many companies and restructuring plans of state-owned enterprises, which expect to raise capital via the nation's stock exchanges.
Among the firms to delay listing plans, Saigon Thuong Tin Real Estate JSC (Sacomreal) has postponed its listing of 100 million shares on the Hanoi Stock Exchange scheduled for July due to unfavorable conditions.
Its CEO Dang Hong Anh said the company would decide the listing date later when the market improves.
Sacombank Securities Co., Ho Chi Minh City Securities Corp. (HSC) and Thang Long Securities JSC, three consultants on the Sacomreal listing, had all advised the firm to delay its debut.
PetroVietnam Capital and Infrastructure Investment JSC (Petroland), which expected to list 100 million shares on the Hochiminh Stock Exchange in early July, also put the plan on hold.
Petroland’s General Director Bui Minh Chinh said his company is considering the timing carefully given current market conditions.
Several commercial banks, including Saigon Bank, Trustbank, Western Bank and Navibank, earlier postponed their debuts. Many cited difficulties in raising capital to VND3 trillion by end-2010 to meet the tough requirement by the State Bank of Vietnam, as well as recent poor performance of bank shares on the two local exchanges.
State-owned oil and gas giant PetroVietnam had expected to launch IPO in 28 subsidiaries this year, but it has reduced the number to 12-13 companies.
Instead of raising capital from affiliates’ listing, the group has changed its strategy to sell stakes to foreign investors. South Korea-based Huyndai has been recently negotiated to buy a 10% stake in PetroVietnam Construction JSC (PVX).
State-run construction giant Vinaconex (VCG) had also projected to restructure portfolio in 34 subsidiaries in 2009-2010. To date, it has withdrawn capital from only 13 firms, none of which are listed.
As of August 25, the benchmark VN-Index fell 14.2% from end-July. But it gained 9.9% in the six consecutive sessions between August 26 and September 6. (VNS)
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