A BSC branch. The company has raised nearly VNĐ2.7 trillion from share offerings via private placement. (Photo: vneconomy.vn)Sao Mai Group Corporation (HOSE: ASM) initially planned to issue roughly 168million shares to raise over 2 trillion VND.
About 1.6 trillion VND of the proceeds would be used to add to its operatingcapital, 253 billion VND to invest in An Giang Tourism Development JSC, and 69billion VND to invest in Dong Thap Tourist JSC.
However, the firm later announced the cancellation of the plan on grounds ofglobal uncertainties and unfavourable market conditions.
Louis Capital JSC (HOSE: TGG) followed suit by shelving its plan to issue 54.6million shares, of which one half was offered to existing shareholders and theother to investors via private placement.
Kien Giang Construction Investment Consultancy Group (HOSE: CKG) did likewiseby suspending its registration for the private placement of 13.4 millionshares.
Approved in August, CKG's plan aimed to offer the shares, 15,000 VND apiece, toprofessional investors to raise 201 billion VND, which would be used for debtsettlement and wage payments.
Experts attributed the cancellation of the capital-raising plans to a bearishmarket, which saw many stocks fall off peaks by between 50 and 70% in prices.
Price drops make the share offerings less attractive to investors,leaving many issuers with no choice but to cancel their plans to avertunsuccessful issuances.
However, some issuers stayed the course by lowering their offering prices amidbearish sentiment.
Development Investment Construction JSC (HOSE: DIG) drew up a new plan to offer100 million shares at most to its existing shareholders to mobilise 1.5trillion VND for the Long Tan Tourism Urban Project.
Under the plan, DIG new offering price (15,000 VND per share) was set at halfthe offering price set in late May (30,000 VND per share).
Thu Duc Housing Development Corporation (HOSE: TDH) initially approved the planto offer 120 million privately-placed shares at a price of 12,000 VND apiece inits general meeting early in the year.
However, the firm later adjusted the plan by cutting the offering volume to 58million shares and the offering price to 10,000 VND apiece, down 20%.
The purpose of issuance was changed as well, from financing Dong TrungResidential Project in Binh Duong province to financing Nha Dat ResidentialProject in Long An province.
Although share offerings were not so successful for some firms, total capitalraised by the channel in the first nine months of 2022 stood at tens oftrillions of dong.
Securities firms and banks took the lead in terms of volume andsuccess rates. Remarkably, NamA Bank, SEABank, VNDirect and SSI managed toraise trillions of dong throughshare offerings to existing shareholders.
BIDV Securities JSC (BSC) successfully raised nearly 2.7 trillion VND fromoffering privately-placed shares to its Korean shareholder Hana Securities witha price of 41,000 VND apiece, about 37% higher than their market price.
Vietnam Container Shipping JSC said it took them up to 11 months to raisecapital via public offerings. In the capital-raising plan in mid-September, itswitched to private placement to not "pass up the opportunity tocompetitors".
Public offerings allow issuers to distribute shares to more than 100 investors.However, this means of issuance sets the bar high on issuers' financial healthand incurs a lengthy procedural process./.
VNA
