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More and more companies shifting listings in H1

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 canceled their listings on HOSE and HNX to the UPCoM.

Some companies – including construction firms Song Da 7 JSC (SD7) and Lilama 45.4 JSC (L44), Bach Dang TMC Construction Investment JSC (BHT), PetroVietnam – Nghe An Investment & Trading JSC (PXA), Mitraco Livestock JSC (MLS) and The Viet Nam National General Export - Import JSC No.1 (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 VND276 billion (US$12 million) by the end of last year, exceeding its charter capital of VND135 billion.

Although the company has set the profit target of over VND11 billion this year, but it continued to register a loss of VND2.2 billion in the first quarter. Its shares, priced VND5,500 per share, were almost inactive since trading on the UPCoM.

The listing removal of Khanh Hoi 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.

Binh Dinh 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 VND41,000 per share on HOSE.

Truong Thanh 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 Viet Nam Electrical Equipment (JSC), Sai Gon Real Estate JSC (SGR), Viet Nam Power Development (VPD), construction firm Dat Phuong JSC (DPG) and Van Phu-Invest Investment JSC (VPI).

Van Phu-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.

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More and more companies shifting listings in H1

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 canceled their listings on HOSE and HNX to the UPCoM.

Some companies – including construction firms Song Da 7 JSC (SD7) and Lilama 45.4 JSC (L44), Bach Dang TMC Construction Investment JSC (BHT), PetroVietnam – Nghe An Investment & Trading JSC (PXA), Mitraco Livestock JSC (MLS) and The Viet Nam National General Export - Import JSC No.1 (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 VND276 billion (US$12 million) by the end of last year, exceeding its charter capital of VND135 billion.

Although the company has set the profit target of over VND11 billion this year, but it continued to register a loss of VND2.2 billion in the first quarter. Its shares, priced VND5,500 per share, were almost inactive since trading on the UPCoM.

The listing removal of Khanh Hoi 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.

Binh Dinh 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 VND41,000 per share on HOSE.

Truong Thanh 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 Viet Nam Electrical Equipment (JSC), Sai Gon Real Estate JSC (SGR), Viet Nam Power Development (VPD), construction firm Dat Phuong JSC (DPG) and Van Phu-Invest Investment JSC (VPI).

Van Phu-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.

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