Big players to enter bourse soon, changing the game

Last update: 16:00 | 13/11/2017

VietNamNet Bridge - Many shares will be put into transactions on the bourse soon, but analysts believe they will sell out as investors are more than ready to buy.


The IPO of Becamex IDC is expected to take place in early December in which 311 million shares will be auctioned to mobilize about VND9.6 trillion.

If successful, this would be the second largest IPO in the history, just behind VIetcombank’s IPO 10 years ago (VND10.5 trillion).

Becamex IDC has charter capital of VND13 trillion and the shares to be put into auction account for 23.6 percent of its charter capital.

After Becamex IDC, the Vietnam Rubber Group (VRG), Binh Son Petrochemistry & Refinery (BSR) and PV Oil will also announce their IPO plans.

All of them are big conglomerates. VRG’s valuation is at VND50 trillion ($2.2 billion) and its IPO has value of VND13 trillion. Meanwhile, BSR’s actual value is VND73 trillion ($3.2 billion) and PV Oil’s valuation is at VND12 trillion ($520 million).

A series of big players in their fields will have IPOs in 2017. This includes PV Power (VND22 trillion), VEAM – a machinery corporation (VND13 trillion) and Genco 3, a power generator (VND8.7 trillion).

These conglomerates’ IPOs are expected to be followed by big companies in the power sector in 2018.

Many shares will be put into transactions on the bourse soon, but analysts believe they will sell out as investors are more than ready to buy.

Under the plan, SCIC will divest from a number of enterprises within this year. The enterprises are Vinamilk (dairy producer), Binh Minh Plastics, Tien Phong Plastics, FPT (IT), Vinaconex (construction), Sabeco and Habeco (brewers).

Some analysts have warned that the large amounts of shares may not sell because of oversupply, especially when liquidity has not improved in recent months.

Meanwhile, other analysts affirmed that demand is high for the shares of large corporations and there is no need to worry about liquidity.

They emphasized the purchasing power f foreign investors. In Idico, up to 40 foreign institutional investors vied for purchasing a stake of the enterprise among the top 4 industrial real estate developers, and the volume of shares investors registered to buy was four times higher than the volume of shares offered.

Foreign investors spent nearly VND1 trillion to collect a 75 percent stake offered by Idico at the price twice as much as the starting price.

Huynh Minh Tuan from VnDirect Securities commented that the demand is very big from foreign investors and they are willing to buy all the shares of companies with potential. 

Most of the enterprises with IPOs operate in key business fields of the economy.


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Kim Chi

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