Fewer firms debut on stock exchanges in nine months
The Ham Phu 2 Solar Power project in Binh Thuan province's Ham Thuan Bac district, is built by Gia Lai Electricity JSC (HoSE: GEG). (Photo: geccom.vn)
As of the end of September, 10 companies debuted on the Ho Chi Minh Stock Exchange (HoSE). Most of them moved from the Unlisted Public Company Market (UPCoM).
Nine companies debuted on the Hanoi Stock Exchange (HNX) in the January-September period.
Some of the companies making their debuts in the first three quarter included Gia Lai Electricity JSC (HoSE: GEG), Dabaco Group (HoSE: DBC) and Kosy JSC (HoSE: KOS).
The number of companies having new to the two local exchanges in the past nine-months was quite futile compared to the previous two years.
In 2018, total 33 companies started listing shares on HoSE and 22 firms came on the HNX.
Other companies are also planning to move their shares to the two local exchanges.
Those companies include Investment and Industrial Development JSC (UPCoM: BCM), Hanoi Plastics JSC (UPCoM: NHH) and Kien Giang Construction Investment Consulting Group (OTC: CKG).
Listing on the two exchanges is among the best ways for companies to raise capital, serving their business activities, and help increase the firm’s creditability to investors.
According to Nguyen Nhu So, Chairman of Dabaco JSC, moving the company from UPCoM to HoSE helps strengthen its status in comparison with other businesses in the consumer staples sector.
The company plans to increase its charter capital by selling private shares and issuing private convertible bond notes.
Some businesses are likely to break the promise of bringing their businesses onto the stock exchanges made in this year’s annual shareholder meetings.
Le Mien Thuy, General Director of Ricons Construction JSC, said the company plans to list shares on the stock exchanges in the last quarter of the year.
The underwriting firm expects construction companies will produce high profit reports in the October-December period and that would draw interest from investors, he said.
However, the listing will very much depend on the market trading conditions, which have been unfavourable for shareholders, the general director said.
The market trading conditions have remained difficult for any firms to thinking about listing shares on the HoSE and HNX, business executives said.
As of September 30, the benchmark VN-Index on HoSE struggled to gain a total of 12.6 percent.
Meanwhile, the HNX-Index on HNX increased by only 1.2 percent in the same period.
Market trading liquidity remained modest on the two exchanges as investors have been worried about key international events such as the US-China trade war and about the global economic recession.
They have been seeking alternative investments, which are safer and less risky than local stocks, such as gold and government bonds.
Related News
Numerous growth drivers, opening opportunities for enterprises
10:02 | 22/03/2024 Import-Export
EU firms’ confidence in Vietnam increases again: EuroCham
15:36 | 09/10/2023 Import-Export
Managing corporate bond market to develop sustainably
10:43 | 23/08/2023 Finance
Bankers propose resolution to support firms, people
15:16 | 21/07/2023 Finance
Latest News
Six localities should expedite site clearance and public investment
10:36 | 05/05/2024 Finance
Banks announce plans to significantly increase capital
15:11 | 04/05/2024 Finance
Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam
13:47 | 04/05/2024 Finance
Banks strengthen information security systems
14:55 | 03/05/2024 Finance
More News
“Opportune environment” for growth of insurance enterprises
10:15 | 03/05/2024 Finance
Closely monitoring fluctuations to calculate the appropriate time to adjust prices
15:35 | 02/05/2024 Finance
Strictly monitor market fluctuations to appropriately adjust prices
14:46 | 27/04/2024 Finance
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Your care
Six localities should expedite site clearance and public investment
10:36 | 05/05/2024 Finance
Banks announce plans to significantly increase capital
15:11 | 04/05/2024 Finance
Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam
13:47 | 04/05/2024 Finance
Banks strengthen information security systems
14:55 | 03/05/2024 Finance
“Opportune environment” for growth of insurance enterprises
10:15 | 03/05/2024 Finance