Mass Share Issuances to Place High Pressure on Vietnam's Equity Market

New shares commercial banks and companies plan to issue by the end of this year, or early next year, including initial public offerings is forecast to place high pressure on the local equity market.

 

In mid-November and December, commercial joint stock banks will issue up to 240.28 million shares to raise their equity, including 50 million shares each by VIBank and VPBank, 77.3 million shares of Techcombank, 45.28 million of Military Bank and 11.7 million of Gia Dinh Bank.

 

Saigon Commercial Joint Stock Bank, meanwhile, will issue VND1 trillion worth of corporate bonds in the coming time.

These shares and bonds are expected to absorb about VND10 trillion from now to the end of this year. Besides, the auction of VND1 trillion of registered capital in Vietcombank's IPO is scheduled to raise another VND7 trillion.

 

Listed companies are also racing to issue bonus and additional shares for existing shareholders at preferential price, such as Hoa Phat Group with 52.8 million bonus shares.

 

Vietnam’s leading securities broker, Saigon Securities Incorporation, and Hoa An Joint Stock Company will add 56.4 million shares and 3.4 million shares, respectively, to the market soon.

 

The new shares are predicted to have serious impacts on the local banking sector, and to cause the scarcity of dong.

 

Vietnam is estimated to have attracted US$15 billion in the first eleven months of this year, up 40 per cent on-year, said Phan Huu Thang, director of the Foreign Investment Department under the Ministry of Planning and Investment. (Vneconomy)