Companies slow down listing plans amid market turbulence

Hanoi (VNS/VNA) - Most companies are slowing down their listing plans in the context of unfavourable market movements and poor business performances, with some even withdrawing their listing documents.

In the first week of April 2023, for the first time there were two companies withdrawing their listing documents from the Ho Chi Minh Stock Exchange (HoSE). Of them, Phu Hung Securities Company withdrew their listing documents for 150 million shares submitted on November 8, 2022 with the reason that the stock market situation was not favourable for the listing of shares.

Ton Dong A Joint Stock Company withdrew its listing application for nearly 115 million shares submitted on April 22, 2022, due to the macro-economic situation at home and abroad leading to negative business results in 2022. In 2022, the company lost 276.5 billion VND (11.7 million USD).

In addition, one enterprise that cancelled its listing plan on HOSE was Sacom Real Estate Joint Stock Company (SamLand), because the listing plan was no longer consistent with the company's development orientation in the near future.

In 2022, SamLand lost 61.79 billion VND, while in 2021, it reported a profit of 5.96 billion VND. At this year's shareholders' meeting, the company expected to lose nearly 16 billion VND in 2023.

SamLand is the investor of the 55.2ha Nhon Trach project in the southern province of Dong Nai and the SamLand Riverside project in HCM City. These two projects are behind schedule, with the SamLand Riverside project facing problems with land laws.

At the beginning of March 2023, HoSE announced that it would stop considering the application for listing shares of An Giang Agro-Food Import-Export Joint Stock Company, because this company had not submitted additional documents that the bourse requested.

Many other enterprises have submitted listing documents, but so far, they have not yet completed the procedures to be approved by HoSE for listing such as Thanh Cong Securities Company, which submitted a listing application for more than 100 million shares on March 17, 2022; Vietnam Construction Securities Company filing for listing 16.8 million shares on March 18, 2022; Quy Nhon Port Joint Stock Company with 40.4 million shares on April 18, 2022; CRV Real Estate Group Joint Stock Company with 672.4 million shares on June 8, 2022; VCP Energy and Construction Joint Stock Company with 83.79 million shares on June 14, 2022 and Saigon SRG Investment Joint Stock Company with 92.9 million shares on August 11, 2022.

According to regulations, enterprises wishing to list shares on HoSE must have charter capital of 120 billion VND or more, two consecutive profitable years before the year of listing registration, return on equity (ROE) of at least 5%, no debt overdue for more than a year, no accumulated loss, at least 20% of voting shares owned by at least 300 shareholders who are not major shareholders, shares have been traded on UPCoM for at least two years and approved for listing by the general meeting of shareholders./.