Two successes and one failure at HNX.
Three State-owned enterprises conducted initial public offerings (IPOs) at the Hanoi Stock Exchange (HNX) recently, with significantly different outcomes.
The Hanoi Transport Service Corporation (Transerco) conducted its IPO on March 14, with more than 1.1 million shares on offer, or 20.3 per cent of its charter capital post-equitization. All shares were sold, at an average price of VND10,000 ($0.47) per share.
The auction attracted eight investors, with a total purchase of over 1.1 million shares. All eight secured shares. Institutional investors purchased 1 million shares, or around 90 per cent of the total.
The highest purchase price offer was 10,100 per share, while the average successful price was VND10,000 ($0.47) per share. The total value of shares sold reached VND11 billion ($512,380).
The State continues to hold more than 2.8 million shares, representing 51 per cent of the charter capital, employees hold 28.7 per cent, and 20.3 per cent is held by public investors. Transerco’s post-equitization capital is VND55 billion ($2.56 million).
The Thong Nhat Electromechanical Limited Company (Vinawind), meanwhile, conducted its IPO on March 17, with a starting price of VND10,200 ($0.48) per share, but the average successful price was VND42,383 ($1.98) per share. The total value of shares sold was VND243.8 billion ($11.36 million).
The highest purchase price was VND45,200 ($2.11) per share, while the lowest was VND41,000 ($1.91), or four times higher than the starting price.
There were 126 investors participating in the IPO but only four were successful, including one intuitional and three individual investors, none of which were foreign investors.
Conversely, on March 16 Cam Ranh Port offered some 6.08 million shares but only 585,000 were sold, accounting for just 10 per cent. The total value of shares sold was VND5.92 billion ($275,931).
Fifty individual investors bought shares, with the highest price offered being VND19,200 ($0.89) per share, while the average successful price was VND10,172 ($0.47). The company aimed to raise its charter capital post-equitization to VND264.5 billion ($12.38 million), making the IPO a failure.