Billions of new shares ready to hit market at year-end

Billions of new shares ready to hit market at year-end

In total, over five billion new shares have been granted approval for trading on HoSE this December.

An investor conducts a transaction at a trading office of a securities firm in Hà Nội. — Photo bnews.vn

Concerns regarding a potential oversupplying of stocks in the market are entirely justified as companies race to launch initial public offerings (IPOs), list their shares and issue additional capital while overall liquidity has entered a period of stagnation. In December alone, numerous prominent companies have set dates for their market debuts or updated their capital increase rights.

Notably, on December 8 it was the ex-dividend date for SSI Securities Corporation (SSI) as the firm prepared to offer more than 415 million shares to existing shareholders at a ratio of 5:1. Priced at VNĐ15,000 per share, SSI anticipates raising more than VNĐ6.2 trillion (US$235.2 million).

Coupled with a previous private placement of more than 104 million shares at the end of August, SSI's charter capital is projected to exceed VNĐ24.9 trillion, temporarily reclaiming the title of the largest charter capital in the securities industry.

Just prior, the market witnessed the ex-dividend date for VIC shares as Vingroup prepared to finalise its list of shareholders for the issuance of 3.85 billion bonus shares to current shareholders.

The Hochiminh Stock Exchange (HoSE) also recently announced the first trading date of VPBank Securities (VPBankS) on December 11.

The company will list 1.875 billion shares at a reference price of VNĐ33,900 per share, positioning VPBankS with an estimated market capitalisation of around VNĐ64 trillion upon its entry.

Thanks to Decree 245/2025, VPBankS has been enabled to expedite its listing process. The company achieved this milestone in less than 30 days following its IPO, a significant reduction from the previous timeline of three to six months.

Meanwhile, the market is eagerly awaiting the official listing of VPS Securities (VCK), which has recently received its trading code. Investors are particularly keen to see how VCK's entry will impact market dynamics.

The banking sector is also stepping up to attract capital. VietinBank (CTG) has announced plans to finalise its shareholder list on December 18 to issue nearly 2.4 billion shares as part of a dividend payout.

This upcoming distribution is set to become the largest stock dividend issuance in the banking sector for 2025, reflecting the robust and competitive activities within Việt Nam’s financial markets.

Additionally, on Wednesday, HoSE welcomed VVS shares from the Vietnam Machine Development Investment Corporation (VIMID), which transitioned from UPCoM to HoSE. More than 21.5 million VVS shares will trade at a debut price of VNĐ58,000, resulting in an estimated market capitalisation near VNĐ1.25 trillion.

The price fluctuation limit on their first trading day will be set at +/- 20 per cent from the reference price. Collectively, the market capitalisation of these three newcomers is expected to reach approximately VNĐ154.2 trillion.

In total, more than five billion new shares have been granted approval for trading on HoSE this December.

Furthermore, HoSE has received an additional five new listing applications from companies including Masan Consumer Holdings (MCH), Regal Group (RGG), An Giang Agricultural Products (ANT), Dong A Steel (GDA) and Gia Lai Hydropower (GHC), all previously traded on UPCoM.

Notably, Masan Consumer Holdings, a subsidiary of Masan Group, is registering more than one billion shares for listing, with the submission accepted on November 5.

Currently, MCH shares are trading at approximately VNĐ214,800, boasting a market capitalisation of about VNĐ214.8 trillion. This valuation positions Masan as a potential top 10 company on HoSE, surpassing several prominent firms.

The anticipated influx of billions of new shares into the market has not sparked the expected excitement. Instead, liquidity has stagnated around VNĐ20 trillion per session, well below the record VNĐ50-80 trillion seen earlier this year before new listings began.

Trần Quốc Toàn, director at Mirae Asset Securities (MAS), said that concerns over the supply of stocks are valid. With limited investment capital, the diversion of tens of trillions of đồng into new IPOs and share offerings has directly pressured liquidity.

The capital is being spread thin rather than enhancing secondary market transactions, cash is flowing into primary issuances, leading to a liquidity crunch, Toàn told the Lao động (Labour) newspaper.

Supporting this view, Dr Hồ Sỹ Hòa, Head of Research and Investment Advisory at DNSE Securities, said that major IPOs from firms like VPBankS and VPS have drawn substantial interest from retail investors, complicating the market's liquidity balance. 

Bizhub