Businesses rush to list shares after gov’t threatens sanctions
VietNamNet Bridge - The government’s threat to dismiss CEOs of public companies which deliberately delay share listing is expected to contribute to a ‘whirlwind’ of shares offered in the last six months of the year.


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Deputy PM Vuong Dinh Hue on July 14 requested MOF and the Government Office to make public the list of 730 equitized businesses which have not registered to list shares on the bourse.

The equitized enterprises with state capital of 36 percent of charter capital or more will be forced to list shares on the bourse. 

The listing of enterprises with state capital of less than 36 percent will be determined by the enterprises’ board of directors, as stipulated in the Securities Law.

The government has threatened to impose heavy sanctions on enterprises which deliberately delay the listing, including a fine of up to VND300-400 million and the dismissal of CEOs.

The government has threatened to impose heavy sanctions on enterprises which deliberately delay the listing, including a fine of up to VND300-400 million and the dismissal of CEOs.

From July 17-21, 14 stock items with 500 million shares debuted on HOSE, HNX and UpCom markets

These included 150 million BWE shares of Biwase, a water supply & environment service company, and 21 million TVT shares of Viet Thang Corporation (VND35,000 per share), to be listed on the HCMC bourse.

It is expected that at least 10 equitized state-owned enterprises and 15 companies in which the state holds controlling stakes will enter the bourse in the last five months of the year with 1.5 billion shares to be put into transactions.

These include VEAM Corporation, a machine manufacturer with charter capital of VND13.288 trillion, MIE (Machine and Industrial Equipment Corporation) with charter capital of VND1.42 trillion and Vinaincon VND1.5 trillion.

PV Power’s shares are expected to be a ‘blockbuster’ when the company’s IPO is held in late August. It will list shares by the end of the year.

The government is looking for strategic investors for PV Power, and is considering reducing the ownership ratio to below 50 percent.

The equitization process of PV Power will include the IPO of 3-4 percent of stakes, while 45 percent of shares would be reserved for strategic investors. The figure could be up to 60 percent, depending on the government’s decision.

PV Power now runs four gas power plants, three hydropower plants and one thermal power plant with total designed capacity of 4,208 MW.

As for the banking sector, all commercial banks, public or not, must put their shares into transactions either on unofficial and official bourses to improve their transparency.

In the last five months of 2017, at least 10 banks will list shares on UpCom market with total charter capital of VND95 trillion.


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Kim Chi

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