The change will take effect in early November and is likely to significantly boost the activities of institutional investors in the Vietnamese stock market. — Vietnam News
HANOI: New rules enabling foreign investors and organisations to trade without pre-funding, coupled with the prospect of elevating the stock market to the emerging FTSE index, are drawing foreign investors to the securities group.
Vietcap Securities JSC (VCI) has just announced a resolution to issue privately 143.6 million shares, equivalent to 25% of the outstanding shares, for 28,000 Vietnamese dong per share (US$1.14).
The price is significantly lower than the stock market price of 36,600 dong per share on Monday. The list of prospective investors for the offering includes 66 individuals and organisations.
Notably, Pyn Elite Fund, a foreign fund from Finland, is the largest institutional investor with a registered purchase of 21.5 million shares, representing 15% of the total offering, 2.99% of post-issue capital.
In a letter to investors, the fund’s managing director Petri Deryng said that Pyn Elite Fund participated in a private placement of one of Vietnam’s leading brokerage firms at an attractive price compared to market prices.
The issuance of new regulations by the Finance Ministry allowing foreign institutional investors to trade stocks without the need for full payment when placing orders is a significant driver behind this investment decision.
The change will take effect in early November and is likely to significantly boost the activities of institutional investors in the Vietnamese stock market. Several other foreign funds are actively buying VCI stocks in large quantities.
For example, ACM Global Fund from Singapore is acquiring 8.5 million shares, and VEIL is buying 7.5 million shares. — Viet Nam News/ANN
