It is more than a month since global depository receipts (GDRs) of HAGL Joint Stock Company were listed and traded on the London Stock Exchange. The listing aimed at not only drawing foreign capital but also promoting the brand of Vietnamese company in the world, said Mr Vo Truong Son, Deputy General Director of HAGL Joint Stock Company.
Could you tell how HAGL’s GDRs have performed on the London Stock Exchange in the pas more than one month?
As far as we are concerned, investors and funds have purchased HAGL’s GDRs on the London Stock Exchange and they do not want to sell out. Thus, there are a lot of bid orders while there are a few offer orders.
This means that investors in the world pin high hopes on HAGL’s GDRs?
I personally think that investors choose HAGL’s GDRs partly because they want to explore investments in Vietnam. The value of our certificates should be answered billion the time and we cannot have a satisfactory assessment after just one month plus of listing.
So what did HAGL expect when its GDRs were listed on the London Stock Exchange?
Our listing of HAGL’s certificates on the London Stock Exchange are not aimed at "stimulating" the demand for HAGL shares on the stock market but we want to diversify fund-raising channels. On the other hand, we also want to prove that Vietnamese companies also have good and competitive companies.
Notably, after a week HAGL’s GDRs were listed on the London Stock Exchange, London Mayor paid a working visit to Vietnam. He visited the Hochiminh Stock Exchange (HOSE), met chief financial officers (CFO) and introduced procedures to work with London's financial institutions. He also stressed that "Vietnamese companies should confidently list on the London Stock Exchange because this is a good opportunity not only for developing their brands but also attracting investors, etc."
Would you mind sharing HAGL’s experience to be present on the London Stock Exchange?
It was not simple at all. HAGL needed to spend about two years to complete procedure. It was a long and complex process. HAGL is a multi-business conglomerate with five main operating fields with business presences and projects in Vietnam, Laos and Cambodia. It took a lot of time to drafting listing documents because each business field had to be presented in a different set of documents. Moreover, practices, policies and other business aspects are different in Vietnam, Laos and Cambodia, leading rather complex documentations and presentations. For example, we had to show our investment licences and describe our projects and survey permits, etc. But when embarking on evaluation process, these professional consulting institutions worked very hard and provided us with specific instructions for each step we needed to deal with.
It took two years to complete listing documents. Did HAGL feel tired?
This was a new profession and we did not know whether it was successful or not but we never felt discouraged. With that guideline in mind, we did succeed. And we trusted in Deutsche Bank Trust - the appointed depositary for the listing.
In 2011, can HAGL complete its targets approved by shareholders as economic conditions are unfavourable?
Common difficulties are global. We are still confident of realising the net profit target of VND3,000 billion in 2011. With our effect investments in rubber, hydropower, mining and real estate projects, HAGL made a profit before tax of VND3,017 billion in 2010, equal to 113 percent of the full-year plan. Rate of return on revenues reached 50.6 percent, higher than previous years, because we made more profit from corporate restructuring and sales of 11.75 percent of stake in property projects. Diluted earnings per share (EPS) reached VND4,903 after we issued bonus shares. At a recent Annual General Meeting, we planned to pay 10 percent of cash dividend or 15 percent of stock dividend for 2010.
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