Hanoi (VNS/VNA) – Vietnam’s stock market is riding a historic wave of initial public offerings (IPOs), with projections estimating a potential inflow of up to 47 billion USD over the next three years.
The VN-Index has been on a remarkable ascent, consistently breaking new milestones, bolstered by a robust influx of capital and the announcement of a market upgrade from FTSE Russell.
Early on October 8 (Hanoi time), FTSE Russell officially announced that Vietnam would be reclassified from frontier to secondary emerging market status.
This dynamic environment has prompted numerous companies to accelerate their fundraising plans, signalling renewed investor confidence and a growing appetite for equity participation.
Recent statistics show a marked increase in the number of companies announcing IPOs or plans for capital increases. Securities firms are seizing this moment to strengthen operations, expand proprietary trading, enhance margin lending capabilities and ensure they are ready to meet surging market demand.
Major listings draw strong demand
One of the most talked-about companies is Techcom Securities (TCBS), a subsidiary of Techcombank.
On September 18, the State Securities Commission of Vietnam (SSC) announced that TCBS's IPO was oversubscribed, with demand reaching 2.5 times the number of shares offered.
The offering attracted a record 26,000 investors, including 78 institutional investors, enabling TCBS to successfully issue 231.15 million shares, raising its charter capital to over 23.1 trillion VNA (nearly 1 billion USD).
The excitement surrounding TCBS is further fuelled by plans for its stock to be listed in October, which could raise its valuation to over 4 billion USD, marking a substantial milestone in the Vietnamese market.
VPBank Securities (VPBankS), a subsidiary of VPBank, has also announced its IPO plans. VPBankS intends to issue up to 25% of its outstanding shares, potentially increasing its charter capital from 15 trillion VND to 18.75 trillion VND.
This move positions VPBankS to become one of the most highly capitalised firms in the sector, with plans to increase foreign ownership limits to 100%, demonstrating an intent to attract international investment after the market upgrade.
The favourable market conditions are further reinforced by leading brokerages such as VPS, which are conducting investor surveys to gauge interest in upcoming IPOs.
According to VPS representatives, this approach is essential for identifying the optimal timing for public offerings, enabling firms to maximise investor participation and capital inflow.
In a different sector, Hoa Phat Agriculture Development JSC, a leading poultry and egg producer, has recently submitted its IPO application to the SSC and is set to list on HoSE in December under the ticker HPA.
The company plans to offer up to 30 million shares, representing 11.7% of its charter capital, at a price no lower than the book value of 11,887 VND per share.
Proceeds from the IPO will be used to invest in farms, animal feed production facilities, bolster working capital and support expansion and operational growth.
Several other significant players are also preparing for their IPOs, including Gelex Infrastructure, C.P. Vietnam, Highlands Coffee, Bach Hoa Xanh and Dien May Xanh, reflecting a broad-based push by Vietnamese enterprises to tap public capital and expand their market presence.
Path to market upgrade
Dragon Capital's latest report indicates that the IPO wave is reviving with numerous positive signals, potentially serving as a catalyst for market growth.
The firm estimates that the Vietnamese stock market could see an inflow of up to 47 billion USD in IPOs over the next three years.
CEO of Vikki Bank Securities (VikkibankS) Huynh Anh Tuan said the stock market would be crucial for companies seeking to raise capital. Given the current positive climate, marked by high liquidity and rising stock prices, it would be logical for firms to accelerate their IPO efforts.
Tuan said the government focused on fostering a dynamic market to achieve upgrades, making it vital to encourage companies to list and auction shares.
“New capital, fresh investors and high-quality stocks will stimulate interest from both domestic and international institutions, increasing market capitalisation—a vital step toward sustained growth,” he said.
Experts have agreed that alongside the potential upgrade from frontier to emerging market status, the availability of high-quality investment options is key.
Estimates suggest that if the upgrade occurs, foreign capital could flow into Vietnam at 5 billion USD to 10 billion USD in the first year, contingent upon the availability of attractive shares.
Tran Thi Kim Oanh, PhD, from the University of Finance and Marketing, stressed the need for better corporate governance and English-language financial disclosures to enhance foreign investment. Currently, only 30% of companies on the Ho Chi Minh Stock Exchange (HoSE) provide complete disclosures in English.
Director of Individual Client Analysis at Yuanta Vietnam Nguyen The Minh highlighted the importance of maintaining momentum in listed companies and facilitating a long-term wave of IPOs.
The Decree 245, issued by the Government on September 11, shortens IPO timelines and enhances investor protections. It is expected to increase the supply of IPOs, addressing a shortage since 2022. If successful, upcoming IPOs could encourage foreign investors to return to the market, he said./.
VNA
