Inside SCIC’s office in Hanoi. (Photo: VNA) Hanoi (VNA) - TheState Capital Investment Corporation (SCIC) has confirmed it will continue itsscheduled competitive share offerings in four companies in the latter half ofthis month.
The move aims to ease investor concerns over the possibility of a delay afterthe corporation was yet to disclose the initial bidding prices for thesecompanies as scheduled.
In November, the Government’s investment arm announced a series of Statecapital divestments from five listed companies, including Vietnam Constructionand Import-Export Joint Stock Corporation (Vinaconex), Tien Phong PlasticsJoint Stock Company (NTP), Binh Minh Plastic Joint Stock Company (BMP), DomescoMedical Import - Export Joint-Stock Corporation (DMC) and FPT Corporation(FPT).
By the end of last month, SCIC had only announced the initial selling price forVinaconex (stock code VCG), which was set at 25,600 VND (1.12 USD) per share,and had yet to announce bidding prices for four other companies as scheduledbetween November 27 and December 1.
SCIC will continue working on share offerings for these four shares, as statedat the November 17 roadshow, with no imminent disruption, a representative fromSCIC told Vietnam News by telephone, explaining it is awaitinginformation of companies for price announcement.
SCIC will auction 96.24 million shares of Vinaconex, equal to a 21.79 percentstake of the company, on December 8 on the Hanoi Stock Exchange. In the latterhalf of this month, it will continue offloading 37.1 percent of capital at TienPhong Plastic, 29.51 percent at Binh Minh Plastic, 34.71 percent at DomescoMedical and 5.96 percent at FPT Corp.
Share prices of these four companies quickly attracted investors’ attention andsharply increased in value following the divestment announcement.
BMP’s share price has increased 30 per cent in the past one month, from 73,000VND per share to 95,000 VND (4.2 USD) on November 30. FPT’s share price was up16 percent to 58,400 VND (2.2 to 2.59 USD); DMC up 27 percent from 104,000 VNDto 132,000 VND and NTP up 17 percent from 72,800 VND to 85,000 VND.
This is not the first instance of the SCIC’s share offering taking a positiveturn on a company’s market value.
After the SCIC’s auction of 48.4 million shares of Vinamilk on November 10,2017, Vinamilk’s shares (VNM) increased its value from 151,000 VND per share to173,800 VND (6.7 to 7.75 USD) with more than nine million shares being tradedon the stock exchange on that day.
VNM price closed December 4 at 203,000 VND per share, a monthly increase of 31percent.
Following the success at Vinamilk, on November 29, the Ministry of Industry andTrade announced an offering of 343.7 million shares for the State-owned SaigonBeer Alcohole Beverage Joint Stock Company (Sabeco), equivalent to 53.59 percentof its charter capital at initial selling price of 320,000 VND (14.2 USD) pershare.
After the divestment plan is announced, SAB shares rose sharply, from 190,000VND to 339,000 VND per share (8.45 to 15 USD), becoming the most highly pricedstock on the market at present.
If the offering of Sabeco’s shares is successful, the MoIT will collect atleast 109.9 trillion VND (4.8 billion USD).
SCIC has made significant progress in its divestment, as it is interested inthe bidding process to increase transparency, rather than just selling a majoritystake to strategic investors, as before.
The SCIC wants to promote the competitive bidding process to enhancetransparency in the divestment process, so that listed companies can be exemptfrom making a public bid, instead of being obliged to send a written letter ofinterest of purchase to the auction board seven days before any auction.
In addition, SCIC is considering asking for the Government’s approval to sell amajority of shares from its divesting companies for a better price than themarket’s expectation.-VNA
VNA
