More companies shift listings in H1
The delistings were high in June when seven companies cancelled their listings on the HOSE and HNX to move to the UPCoM.
HAØ NOÄI Around 20 companies have shifted their listings among the stock exchanges since the beginning of this year, more than half moving back to the Unlisted Public Company Market (UPCoM) due to prolonged losses.
Saigontourist Transport Corporation (STT) was the latest company which was forced to move its listing from the Ho Chi Minh Stock Exchange (HOSE) to the UPCoM. STT terminated the listing on July 6 after posting losses for three consecutive years.
The delistings were high in June when seven companies cancelled their listings on the HOSE and HNX to move to the UPCoM.
Some companies including construction firms Soâng Ñaø 7 JSC (SD7) and Lilama 45.4 JSC (L44), Baïch Ñaèng TMC Construction Investment JSC (BHT), PetroVietnam-Ngheä An Investment & Trading JSC (PXA), Mitraco Livestock JSC (MLS) and The Vieät Nam National General Export-Import JSC No1 (TH1) reported cumulative losses in excess of their chartered capital.
For example, TH1 had to leave the HNX after nine years after it announced an accumulated loss of VNÑ276 billion (US$12 million) by the end of last year, exceeding its charter capital of VNÑ135 billion.
Although the company has set the profit target of over VNÑ11 billion this year, but it continued to register a loss of VNÑ2.2 billion in the first quarter. Its shares, priced VNÑ5,500 per share, were almost inactive since trading on the UPCoM.
The listing removal of Khaùnh Hoäi Investment and Services Corp (KHA) in May was an exception when the company volunteered to move trading from HOSE to the UPCoM.
This was greeted with a mixed reaction from shareholders in the annual shareholders meeting last year.
Many supported the delisting, citing high cost of listing maintenance given low liquidity of the shares on the bourse. Meanwhile, others were afraid that listing on the UPCoM would not ensure the information transparency.
Select new ground to bloom
At the other end of spectrum, many firms opted to move their listings to high-profile exchanges to expand their brands as well as opportunities to raise capital.
Bình Ñònh Pharmaceutical and Medical Equipment JSC (DBD) shifted from UPCoM to HOSE on June 15. DBD is the second biggest pharmaceutical firm in terms of total assets, behind DHG Pharmaceutical JSC (DHG).
However, its share value lost about 18 per cent since the bourse shifting, being traded around VNÑ41,000 per share on HOSE.
Tröôøng Thaønh Real Estate and Construction JSC (TEG) joined HOSE March after over two years of listing on the HNX. The company increased its capital three times since its establishment in 2011 and planned the fourth capital hike this year by issuing 10 million shares.
Besides, there are also many businesses looking for bigger playground for their listing such as Vieät Nam Electrical Equipment (JSC), Saøi Goøn Real Estate JSC (SGR), Vieät Nam Power Development (VPD), construction firm Ñaït Phöông JSC (DPG) and Vaên Phuù-Invest Investment JSC (VPI).
Vaên Phuù-Invest listed 160 million shares on HOSE on June 29. In the real estate sector, the company ranked seventh in terms of the biggest market value. VNS