 HOSE listed firms report double capital rise
Saigon Times - 7/28/2015 8:23:54 AM
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Since they began trading their shares on the Hochiminh Stock Exchange (HOSE) in HCMC, listed enterprises have doubled their chartered capital to expand operations and improve financial positions, said HOSE chairman Tran Dac Sinh.
Speaking at a ceremony to mark the bourse’s 15th anniversary in HCMC over the weekend, Sinh said the listed companies had raised considerable amounts of funds on the country’s first stock market.
In particular, Vincom JSC has revised up its chartered capital by 1,781%, Refrigeration Electrical Engineering Corporation by 1,690%, Vietnam Dairy Products JSC (Vinamilk) by 529%, FPT Corporation by 465% and Saigon Securities Incorporation by 342%.
In the banking sector, Saigon Thuong Tin Commercial Bank has raised its chartered capital by 554%, Vietnam Bank for Industry and Trade by 230% and Bank for Foreign Trade of Vietnam by 120%.
Many listed enterprises on HOSE take the lead in their respective sectors in Vietnam and have an average market cap of over VND3.6 trillion (US$165.3 million) each. They have achieved steady growth over the years.
Speaking at a ceremony to hand over the Labor Medal First Class to HOSE, Prime Minister Nguyen Tan Dung expressed appreciation of the agencies involved in running the stock market. However, Dung told the Ministry of Finance and the State Securities Commission of Vietnam (SSC) to implement a restructuring plan and diversify products for the stock market so that it can mobilize more medium and long-term capital for the economy.
The two agencies were told to boost the equitization of State-owned enterprises (SOEs) and help them list their shares on the stock market.
“The issuance of Government Decree 60 that removes the foreign ownership cap at a majority of listed enterprises will create opportunities for the stock market. Total capital of SOEs is estimated at VND1,200 trillion (US$55.2 billion). If those SOEs float shares on the stock market, it would be very good,” Dung said.
He added the stock market is a channel for businesses to raise capital and an incentive for them to enhance corporate governance. He told the Finance Ministry and SSC to do more to ensure the stock market will further develop.
Dung also ordered relevant agencies to manage the stock market in a way that improves transparency and safety.
Finance Minister Dinh Tien Dung said the economic restructuring process had shown positive signs and that Decree 60 has left positive impact on the stock market.
Phan Thi Tuong Tam, general director of HOSE, said HOSE now has 303 enterprises listed with a combined market capitalization of over VND1,100 trillion and that 87 securities companies are managing 1.5 million investors’ stock transaction accounts.
Total value of shares traded on HOSE over the past 15 years is VND2,700 trillion. The market cap of the listed firms on the HCMC bourse accounts for 88% of Vietnam’s total. The average daily trading volume on the exchange reached over VND2.1 trillion last year, making up 70% of the country’s total.
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