UPCoM listing by firms sees major shareholders sell out
The Southern General Import-Export Joint Stock Company, a strategic shareholder in the Vietnam Seafood Corporation, made the decision to sell its stakes immediately after the latter listed on UPCoM on December 23.
Illustrative image (Photo: VNA)Hanoi (VNA) - The Southern General Import-Export Joint Stock Company (SGIEC), a strategic shareholder in the Vietnam Seafood Corporation (SEA), made the decision to sell its stakes immediately after the latter listed on UPCoM on December 23.
SGIEC has registered for selling 18.75 million shares of SEA, equivalent to 15 per cent of the company’s prescribed capital. If the transaction goes through, SGIEC would no longer be a SEA shareholder.
The main reason for the separation is believed to be a difference of opinion between SGIEC and SEA’s state shareholder over developing a real estate project in downtown HCM City.
Similarly, the Pacific Petroleum Transportation Joint Stock Company listed its shares on UPCoM on December 12.
Immediately afterwards a major shareholder with a 10.13 per cent stake, PVI Asset Management Joint Stock Company, announced it would sell all its shares in Pacific.
Not only are some big stakeholders selling out their shares but even parent companies are doing so from their subsidiaries.
For instance, the Song Da 5 Joint Stock Company has decided to sell 13.2 million shares, or 88 per cent of the legal capital of its subsidiary, Song Chay Hydro Power Company, after the later listed on UPCoM.
Some State agencies too are doing this.
The People’s Committee of the northern mountainous province of Lang Son recently registered for a second time to sell more than 2.2 million shares of the Lang Son Water Drainage and Supply Joint Stock Company, which will reduce its ownership from 95.05 per cent to 51 per cent.
After the company listed on UPCoM in late July the People’s Committee had once tried to sell its shares, but in vain.
Analysts said the rush to disinvest is caused by a desire to restructure investments to improve their effectiveness.
Besides, many investors looking to pull out are simply taking advantage of the fact that many companies are listing on UPCoM and hoping to get better prices for their shares.
It is benefiting the market by increasing liquidity and its sheer size by increasing the free float of shares.-VNA
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