Going public amidst hard time

Although the stock market witnessed worst transaction sessions in the history, many enterprises that have prepared for going public in fixed schedule haven’t changed their plan. Those firms have strong confidence in long-term enterprise development prospect and expectation about improvement in macro-economy in the last months of the year.

In early April, Hochiminh Stock Exchange (STC) announced to receive the application profile for officially starting to list shares on the stock market submitted by Military Commercial Joint Stock Bank (MB). Accordingly, the 7.3 trillion dong bank has registered for listing 730 million shares on the southern bourse. When going public this year, MB will become one of the largest share codes in the market that can affect the VN Index.

Similarly, the Hochiminh Stock Exchange (STC) also approved in principle for BIDV Insurance Joint Stock Corp (coded BIC) to list 66 million shares on the southern floor. The company expected to receive the official certificate for listing shares, and will go public within the period of 90 days after receiving the certificate. BIC was one of the large non-life insurance providers that have high annual growth rate in the last few years.

Pham Quang Tung, BIC’s chair of management board stated that after the corporation receives the official certificate, BIC would start listing shares on the stock market within the period of 90 days. “At that time, we hope that the stock market will get better.”

In 2011, BIC set targets to gain whole year revenue of 1 trillion dong, and profit of 100 billion dong, of which revenue from insurance premium would count for 716 billion dong.

Another real estate trader, Coma 18 Joint Stock Co has recently submitted application profile for listing shares on Hochiminh Stock Exchange (STC). In details, the company will officially list 12 million shares in June 2011, equivalent to chartered capital of 120 billion dong. Le Huy Lan, chair of management board in Coma 18 revealed that the company will complete necessary legal procedures and officially list shares on the stock market in mid June.

In 2011, Coma 18 will continue carrying out construction works on current projects of high-class Westa Tower, Kim Thanh Industrial Zone in Hai Duong province, Luong Son Industrial Zone in Hoa Binh Province, Office Building for Lease of VP6 in Linh Dam Peninsula, Hanoi. In addition, the company will kick off new project of Coma Tower E6 sited on Pham Hung St, Hanoi and seek investment opportunities in new urban area and industrial park projects in large cities of HCM City and Vung Tau.

At present, Coma 18 has face difficulties in raising capital for the current projects. Lan added that the company has worked out plans of issuing corporate bonds, transferring some projects and offering additional shares to hike chartered capital. This year, Coma 18 aimed to obtain targeted revenue of 285.01 billion dong, after tax profit of 51.84 billion dong and dividend payment at 12 percent.

Relating to the roadmap for making debut session, Nguyen Thi Ngoc, Chief of the Management Board Office in Military Bank said the bank will start listing shares as scheduled. MB will close the investors’ list on May 31 and deposit shares on Vietnam Securities Depository Centre. The State Bank of Vietnam (SBV) has already approved for MB to list shares on the stock market.

The statistics collected by Dau Tu Chung Khoan showed that up to now, there are eight application profiles for listing shares on the Hochiminh Stock Exchange (STC) and 15 profiles submitted to Hanoi Stock Exchange (HNX). The director in one of the enterprises that have prepared for making debut session on HNX said that apart from considering the share price, catching up favourable conditions for the investors to make transactions on the stock market was also considered an important factor. If the enterprise refused to list shares on the market due to unfavourable conditions and the shares are already deposited in depository centre, the shareholders do not know how to trade shares then. – DTCK

Tags: vietnam stock, Vietnam stock market, VNindex