ASEAN KEY DESTINATIONS
Vietnamese IPOs die on vine
Few firms have also been successful with initial public offerings (IPOs) in the current depressed climate on the stock market. More than 10 companies made IPOs on the HCM City market this month, but only two firms sold out the shares offered - and many failed to attract investors at all.
Tien Len Steel Corporation, which had been scheduled to hold its IPO last Thursday, has become the latest to cancel its IPO due to lack of investor interest, joining Satra Tien Giang Trading Co and Soc Trang Printing Enterprise in the list of companies that have recently cancelled their offers.
Meanwhile, PetroVietnam Gas - an affiliate of the PetroVietnam - sold 61 million shares in its IPO last week, or 64 percent of the shares offered in what had been viewed as the nation's biggest IPO this year. This result could be still considered a success in the current market downtrend, with PVGas earning about VND1.9 trillion (US$95 million) through the IPO and shares achieving a price of VND31,000 ($1.55) per share.
Among other firms that have recently carried out IPO plans, An Thinh-Vinatex Construction Investment Co sold about 70 percent of its shares - but only three investors joined in the auction. An Giang Agriculture and Food Import Export Co sold 47 per cent of its offered share, while HCM City Finance and Investment Co sold just 32.5 percent. Participants in these recent IPOs were mostly long-term or strategic investors.
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