The Construction Development Investment Joint Stock Corporation recently announced the suspension of the issuance of 200 million shares to the public. — Vietnam News
HANOI: Many listed companies have announced the suspension of plans to issue and offer shares in the context of an unfavourable stock market. However, the move has raised questions about the attractiveness of the capital market, especially the stock market.
The Construction Development Investment Joint Stock Corporation (DIC) has recently announced the suspension of the issuance of 200 million shares to the public, at a price of 15,000 dong per share.
This means DIC will stop its plan to raise three trillion dong from the stock market.
According to DIC, the reason for this move is to ensure the interests of shareholders in unfavourable stock market conditions. The company’s board of directors decided to stop the implementation and adjust the capital raising plan through other means.
In early December 2024, the Hanoi South Housing and Urban Development Investment Corp (NHA) also said it suspended a public offering plan that had been approved by the company’s 2024 annual general meeting of shareholders.
According to the initial plan, NHA was set to offer 8.8 million shares to its existing shareholders, equivalent to 20% of the outstanding shares at an issue price of 10,000 dong per share.
NHA said it needs to change the offer to suit the current business and production situation. The company’s board of directors will consider, decide and re-implement the public offering at another time.
Previously, the Hai Phat Investment Joint Stock Company announced the temporary suspension of its share offering plan to existing shareholders.
The plan offered an additional 152.08 million shares to shareholders to raise more than 1.5 trillion dong. In the banking sector, some banks have temporarily suspended their plans to issue shares in 2024.
The Loc Phat Commercial Joint Stock Bank held an extraordinary general meeting of shareholders, presenting to shareholders the plan to adjust the charter capital increase plan in 2024.
Accordingly, the board of directors of this bank decided to temporarily suspend the implementation of a plan to offer an additional 800 million shares to existing shareholders, halting the raising of 8 trillion dong. The capital increase plan includes only issuing shares to pay dividends to existing shareholders at a rate of 16.8%.
The Orient Commercial Joint Stock Bank also decided to stop the plan to issue 900,000 individual shares and five million employee stock ownership plan shares to increase charter capital.
The Vietnam Tourism and Transport Marketing Joint Stock Company (VTR) has recently also temporarily suspended the application for public offering of shares, which has been submitted to the State Securities Commission, to adjust the detailed capital use plan, ensuring the actual needs of the business.
VTR stated that after finalising a new plan, the company will resubmit the application to offer additional shares to the public to the State Securities Commission.
According to the companies, they have to suspend plans to offer shares due to the unfavourable stock market.
DIC’s leadership assessed that transactions in the stock market are currently quite gloomy with low liquidity.
Besides adverse impacts of exchange rates and interest rate policies, the stock market is under a strong net selling pressure from foreign investors, which has been continuous since the beginning of this year. However, the suspension has raised questions about the attractiveness of the capital market, especially the stock market. — Viet Nam News/ANN
