Staff at Hanoi Stock Exchange enter auction information (Photo: VNA)
A greater number of investors participated in the equity auctions heldon the Hanoi Stock Exchange in April, the northern bourse reported.
Five auctions were organised on the Hanoi Stock Exchange in April,including three initial public offerings (IPOs) of State-ownedenterprises, one auction of share purchase rights, and one shareoffering in the form of direct negotiation with investors present at theauction.
The exchange reported an increase in the number ofparticipants, with an average of 103 investors per auction, a rise ofmore than 39 percent, as compared to March.
As many as 310million shares were offered for sale, of which 24.1 million were soldout, bringing in a turnover of 241.8 billion VND (11.2 million USD).
Theauction of more than 5 million share purchase rights of Tran PhuElectric Mechanical Joint Stock Company, owned by the Hanoi People'sCommittee, was the most successful, with the bid volume being 7.4 timeshigher than the offering rights. A few investors registered to purchaseat a price of 90,000 VND (4.17 USD), which was 5.2 times higher than thestarting price.
All the rights were sold, earning the Hanoi People's Committee 298.5 billion VND (13.8 million USD).
Moreover,of the three IPOs, the equity auction of the Infrastructure Developmentand Construction Corporation (Licogi) of the Ministry of Constructionsaw the highest results, with the entire offering being sold to 106individual investors. It brought in more than 212.8 billion VND (nearly10 million USD), higher than the expectation of 126.7 billion VND(almost 6 million USD).
Of note, auctions of equity of thosecompanies under the Vietnam National Coal Mineral Industries Group(Vinacomin) witnessed poor results.
Vinacomin Power HoldingCorporation sold only 1.2 million shares of a total offering of nearly236.4 million shares, while Vinacomin Minerals Holding Corporation soldjust 1.3 million shares of the 46.7 million shares up for sale.
Thesale of shares of Cam Ranh Port Limited Liability Company saw only oneparticipating investor, selling just 307,000 shares of the totaloffering of 5.69 million shares.
According to the Hanoi StockExchange auction plan, three equity auctions will be held in May—one forSaigon Posts and Telecommunications Service Joint Stock Corporation onMay 14, the Hanoi Cadastral Survey Company Limited on May 19, andVinacomin Viet Bac Mining Industry Holding Corporation Limited on May27.-VNA
