Auction sees single investor pick up all available shares at price nine times higher than offering price.
On the morning of December 22 the Hanoi Stock Exchange organized an auction of shares held by the State Capital Investment Corporation (SCIC) in the Kim Lien Tourism Joint Stock Company (KLC). The total offering was 3.6 million shares, accounting for 52.4 per cent of KLC’s total charter capital.
One domestic investor purchased all of the shares at a winning price some nine times higher than the offering price.
Thirty-six investors registered to buy shares, including 19 institutional and 16 individual investors, seeking 36 times the volume on offer. The offering price was VND30,600 ($1.36) per share, making these orders worth VND112 billion ($4.96 million).
The first minimum ordering price was VND46,000 ($2.04) and the maximum VND102,000 ($4.52) per share by 8.53am.
The price then increased quickly and at 9.05am the eventual winning investor placed an order at VND274,200 ($12.16) per share, for a total outlay of around VND1 trillion ($44.35 million).
Other major shareholders in the company include GPBank, with 21.6 per cent, PTFinance with 6.7 per cent, and GP Invest with 6.6 per cent.
KLC primarily operates in the field of restaurant and catering services. In 2014 it recorded revenue of VND127 billion ($5.7 million) and after-tax profit of VND13.5 billion ($607,500).
It also manages the Kim Lien Hotel in Hanoi, which has a long history in the capital and sits on 3.5 ha in Dao Duy Anh Street, Dong Da district. It was opened in 1961 and was formerly known as the Bach Mai Hotel. The hotel has nine buildings, 437 rooms, and five restaurants.