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September auctions prove a success
10:28, 2015/10/04
Five initial public offerings (IPO) and four auctions of State-owned shares held on the Hanoi Stock Exchange in September concluded with 100 percent of stakes for sale sold, the northern exchange reported.
A total of 54.8 million shares were sold in the nine auctions in September, bringing in a combined value of almost 603 billion VND (26.8 million USD). The number of shares investors registered to buy also reached 77.6 million shares, surpassing the total shares put up for sale by 42 percent.
In August, 70 percent of a total 57 million shares offered in the seven auctions were sold, garnering a total return of 518.3 billion VND (23 million USD) for the State.
The five IPOs in September belonged to the Vietnam National Vegetable, Fruit and Agricultural Product Corporation (Vegetexco), Vietnam National Tea Corporation (Vinatea), Hanoi Livestock Breeding Company Limited, Hanoi Trading and Investment Company Limited and Central Pharmaceutical Company No 1.

 
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Unlike the public sales in the previous month, these IPOs attracted many investors, particularly agribusinesses, with the bid volume often doubling the ask volume.
Total of value of shares sold in the five IPOs reached over 473 billion VND (21 million USD), of which Vegetexco and Vinatea saw the highest value of 278 billion VND (12.4 million USD) and 119 billion VND (5.3 million USD), respectively.
Four other auctions, organised to help the State make divestment in four companies, including Ha Tinh Pharmaceutical JSC, Drilling and Mining Technical Service JSC, Hon Gai Mechanical JSC and The Sugarcane and Sugar Corporation No 1 JSC, also had high investor participation. Notably, the bid volume in the Drilling and Mining Technical Service JSC's public sale was four-fold higher than the volume of shares put up for sale.
Total value of these sales reached almost 130 billion VND (5.8 million USD).
As of September 30, six businesses have registered to hold auctions on the Hanoi's exchange in October, including two IPOs and four auctions of State-owned shares, including Hanoi-based Transport Hospital.
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