OTC market heats up on State firms

OTC market heats up on State firms

Vietnam Airlines, Saigon Beer-Alcohol-Beverage Corporation (Sabeco), Quảng Ngãi Sugar JSC, Trường Hải Auto Corporation and Vietnam National Petroleum Group (Petrolimex) are all floating on the OTC market and are on investor’s radars. — Photo baodauthau.vn

HÀ NỘI – Shares of many big enterprises have become hot co妹妹odities in recent days on the over-the-counter (OTC) market as investors bet on yet to list companies to be superstars on the Unlisted Public Company Market (UPCoM).

The success of State-owned companies such as Hanoi Beer Alcohol and Beverage Corporation (Habeco) and Airports Corporation of Vietnam (ACV) when debuting on the UPCoM has buoyed trade on the OTC market.

Vietnam Airlines, Saigon Beer-Alcohol-Beverage Corporation (Sabeco), Quảng Ngãi Sugar JSC, Trường Hải Auto Corporation and Vietnam National Petroleum Group (Petrolimex) are all floating on the OTC market and are on investor’s radars.

According to big brokers, the stock prices of these companies have increased in the past month because of rapidly rising demand.

A share in Vietnam Airlines costs about VNĐ 四0,000 ($ 一. 七 八), a rise of  七 九 per cent over its IPO price of VNĐ 二 二, 三00 in November  二0 一 四.

The national flag carrier has been quiet since its IPO after  九 九 per cent of its  四 九 million shares for sale were collected by two banks, Vietcombank and Techcombank. Its recent price hike was attributed to the listing success of ACV whose stock price has shot  六 四 per cent in the first week of trading, from VNĐ 二 五,000 per share on Monday to nearly VNĐ 四 一,000 yesterday.

ACV’s price is also  一 八0 per cent higher than its IPO price in December  二0 一 五.

Vietnam Airlines early this week asked its shareholders to register their ownership by the end of this month to serve its registration on the UPCoM in December.

“This investment wave on the OTC focuses on State-owned enterprises which have made initial public offerings,” Nguyễn Hữu Minh, director of EPS Investment Consulting Joint Stock Company was quoted by Đấu thầu (Bidding) newspaper as saying.

Minh said investors were looking to shares of equitised State-owned enterprises on the OTC and betting on prices rising once they are listed. In addition, the new regulation which forces equitised companies to trade on the UPCoM after an IPO has eased investors’ concerns over listing delays.

Prices of Habeco have also soared  九 四. 五 per cent since its debut on October  二 八, shooting from VNĐ 五 四, 六00 per share to VNĐ 一0 六, 二00 on November  二 五.

Investors expect similar success will be replicated in other shares on the OTC.

Shares of Quảng Ngãi Sugar, Trường Hải Auto and Petrolimex have also advanced in recent days. Shares of Trường Hải Auto are valued at VNĐ 九0,000 a share while that of Quảng Ngãi Sugar were bought at VNĐ 八 二,000 and Petrolimex at VNĐ 三0,000.

As State-owned enterprise equitisation is speeding up and the Government puts many market support policies in practice, analysts predict trading on the OTC market will continue to be buoyant in the future. – VNS