Surge in share auctions as companies race to secure capital

Surge in share auctions as companies race to secure capital

The Ministry of Finance has put forward proposals to facilitate more effective capital transfers from State-owned enterprises.

Workers at a processing plant owned by Thuong Dinh Footwear. — Photo thuongdinhfootwear.com.vn

On the domestic stock market, share auction activity is witnessing a remarkable resurgence.

With more than 20 auction sessions anticipated on the Hochiminh Stock Exchange (HoSE) and the Hanoi Stock Exchange (HNX), this renewed momentum marks the significant revival of a channel that has remained relatively quiet for several years.

Companies are rushing to take advantage of this opportunity before the year closes.

One major driver of this auction activity is Thuong Dinh Footwear JSC. Following an announcement from the Hà Nội People's Committee regarding the sale of its shares, Thuong Dinh Footwear's stock has experienced an unprecedented surge.

Starting from under VNĐ20,000 (US$0.76) per share on November 24, the price has skyrocketed past VNĐ95,000 by December 18, reaching a new high on UPCoM.

The auction held on December 16 saw an average winning bid of VNĐ215,999 per share, over ten times the initial offering price and more than twice the current trading price. This exceptional performance highlights the potential for dramatic price fluctuations driven by expectations of shifts in shareholder structure.

Considerable interest was drawn during the auction, with 15 local investors registering over 39.29 million shares, more than six times the amount being offered.

Ultimately, just two investors secured the total of 6,385,867 shares, predominantly acquiring a controlling interest at VNĐ216,000 per share. The sale is expected to generate nearly VNĐ1.4 trillion for the Hà Nội People's Committee.

This spike in auction price activity is noteworthy, as it has been several years since such a significant increase has been observed in this market.

The share auction sector had been dormant for three years, with only 15 successful bidders recorded from 2023 to 2024, in stark contrast to more than 5,000 individuals and organisations active during the peak years of 2016–2018.

Two significant auctions involving State-owned shares also took place in the fourth quarter of 2025.

The entire stake of Viettronics held by the State Capital Investment Corporation (SCIC) was sold to Geleximco for over VNĐ2.56 trillion, 2.66 times the initial offering price.

Earlier this month, SCIC conducted a competitive auction for 56.95 million shares of Viwaseen, following several unsuccessful attempts.

With only two participants in the auction, one organisation purchased the entire stake, representing 98.16 per cent of its capital, at a value slightly above the starting price.

Other notable brands, such as Colusa-Miliket Foods and Hai Ha Koto Buki, were also auctioned, drawing interest from investors keen to capitalise on these opportunities.

For example, last week, four retail investors participated in the Colusa-Miliket share auction, placing valid orders for a total of 3.84 million shares. The highest bid exceeded VNĐ206.1 billion per lot, while the lowest was VNĐ114.72 billion.

At the end of the auction, one investor successfully secured the shares, with the total value of shares sold amounting to over VNĐ206.1 billion.

Nguyễn Sơn, chairman of the Board of the Vietnam Securities Depository and Clearing Corporation, said that to advance the Vietnamese stock market following its recent upgrade, facilitating the flow of products and refining capital-raising mechanisms will be essential.

The supply of shares from the equitisaton of State-owned enterprise and foreign direct investment IPOs has notably declined over the past three to five years, while excessive caution has resulted in missed opportunities for growth.

Current criteria for public companies have tightened significantly. In addition to meeting a minimum charter capital of VNĐ30 billion, companies must ensure that at least 10 per cent of voting shares are held by at least 100 smaller investors, excluding major stakeholders.

Delays in the divestment process can jeopardise a firm’s public company status.

For example, Vinacomin - Minerals Holding Corporation (KSV) is currently listed on the HNX, but has not yet met the minimum ownership structure requirements.

With 96 per cent of its shares owned by Vinacomin, leadership is preparing reports to the State Securities Commission of Vietnam regarding their unique shareholder structure while also bracing for potential public company status revocation. 

Bizhub