Vietnam's stock market welcomes IPO wave after many years of absence

VTV.vn - Shortening the IPO and listing process to 30 days paves the way for a wave of businesses to go public, opening up a new supply source for Vietnamese securities.

Shortening the time to list shares on the stock exchange to only 30 days after approval, allowing simultaneous listing registration with initial public offering (IPO)... the boost from Decree 245 of the Government , amending and supplementing Decree 155 detailing the implementation of a number of articles of the Securities Law, has contributed to clearing the long-standing bottleneck of the Vietnamese stock market, which is the lack of supply of new and quality goods.

Under the old regulations, businesses often had to wait 6-12 months to be able to list their shares after IPO. With the new regulations, this process is shortened to two steps: Preliminary assessment of financial conditions immediately upon submitting the application and official review after completing the IPO. In particular, the requirement to submit a securities registration certificate in the listing application has also been abolished.

Mr. Bui Hoang Hai - Vice Chairman of the State Securities Commission said: "The Securities Commission and the Ministry of Finance will also deploy a series of solutions to increase supply in the market, meeting the investment needs of not only indirect investors from passive funds, but also direct investors."

Shortening the IPO and listing process to 30 days paves the way for a wave of businesses to go public, opening up new supply sources for Vietnamese stocks. Illustrative photo.

For the first time in many years, the stock market has witnessed such a strong wave of IPOs and listings. The wave was initiated by financial institutions, banks, securities companies, and businesses representing many important sectors of the economy , such as IPOs that are expected to take place soon in the financial, agricultural, consumer, automobile, and pharmaceutical sectors.

Mr. Le Anh Tuan - General Director of Dragon Capital Fund Management Company assessed: "A wave of IPOs, if added together, would be around 40 - 50 billion USD. Therefore, the Party and Government's focus on the financial market is extremely correct because it is a channel to mobilize equity capital for businesses, not the banking channel".

Although Decree 245 has only been effective since September 11, it has quickly shown strong practical impacts. One example that directly benefits from the new policy is VPBankS. The IPO of 375 million shares, at a price of VND33,900/share, if successful, will help the company raise more than VND12,700 billion. This is considered the largest deal in the history of the securities industry. The decision to offer 25% of charter capital was made after a period of continuous growth and is aiming for a 10% brokerage market share in the next 5 years.

"Listing to raise capital helps businesses strengthen their financial capacity, improve their management capacity, and especially increase transparency. We have also raised up to 400 million USD in capital through SMBC in the international market. Every business needs transparency to create trust in the market," said Mr. Vu Huu Dien - General Director of VPBank Securities Joint Stock Company (VPBankS).

In the context that Vietnam's securities have been officially upgraded to an emerging stock market according to FTSE Russell standards, solutions to develop commodity supply sources also help address investment needs for the estimated international cash flow of about 5-7 billion USD that is about to flow into Vietnam's securities in the coming time according to the upgrading theme.

Source: https://vtv.vn/chung-khoan-viet-nam-don-lan-song-ipo-sau-nhieu-nam-vang-bong-1002510171507057.htm