"Is Domesco divesting its assets?"

On average, the trading volume of DMC shares in 2024 was less than 3,000 units/session, but in just the last three trading sessions before the Lunar New Year holiday (January 22-24, 2025), the average trading volume surged to nearly 31,000 units/session.

On average, the trading volume of DMC shares in 2024 was less than 3,000 units/session, but in just the last three trading sessions before the Lunar New Year holiday (January 22-24, 2025), the average trading volume surged to nearly 31,000 units/session.

The defensive pharmaceutical stock DMC of Domesco Medical Import-Export Joint Stock Company unexpectedly surged to its ceiling price on January 22nd and 23rd, 2025, with a sharp increase in trading volume of 16,300 units and 11,800 units respectively, pushing the share price to 82,400 VND/share. In the last trading session before the Lunar New Year holiday, January 24th, DMC saw a sudden surge in trading volume to 64,700 units, closing at 83,000 VND/share.

Investors believe this development reflects a positive reaction from capital flows to the upcoming largest share auction in the past two years: SCIC intends to auction off its entire stake of nearly 35% in DMC at an exorbitant price.

On January 22nd, according to an announcement from the Ho Chi Minh City Stock Exchange (HOSE), an auction will be held for a block of over 12 million shares of Domesco Medical Import-Export Joint Stock Company (DMC), equivalent to 34.71% of the capital owned by the State Capital Investment and Business Corporation (SCIC).

The starting price for this block of shares is over 1.531 billion VND, equivalent to 127,046 VND per share. This price is significantly higher than the market price of DMC (as of January 22nd) on the stock exchange (72,100 VND per share).

This is not the first time SCIC has wanted to divest its entire stake in DMC. In 2019, SCIC failed to sell its stake in this pharmaceutical company due to a lack of participating investors. At that time, the starting price for each share was 119,600 VND/unit, 64% higher than the market price of DMC shares at the same time.

As of December 31, 2024, DMC had a charter capital of over 347 billion VND. Abbott Laboratories (Chile) Holdco SpA is the largest shareholder of Domesco, holding 51.68%, followed by the State Capital Investment and Business Corporation (SCIC) with over 34% of the capital.

Abbott Laboratories is expected to acquire all of SCIC's divested shares in Domesco this time, because even though it owns a controlling stake of over 51%, it still does not have full decision-making power, as SCIC still owns over 34%, giving it the right to veto important matters at DMC.

Abbott Laboratories increased its controlling stake to over 51% in DMC in 2016 after acquiring DMC, which increased the foreign ownership limit to 100%. It is estimated that the foreign shareholder spent approximately VND 400 billion to acquire DMC. The value of these shares has now reached nearly VND 1,300 billion, more than three times the initial investment. Furthermore, DMC consistently pays substantial dividends annually.

In 2024, DMC recorded net revenue of VND 1,899 billion, a 10% increase compared to 2023. This is also a record high in its operating history. After-tax profit reached VND 203 billion, an 11% increase and meeting the target of VND 200 billion.

Source: https://baodautu.vn/game-thoai-von-tai-domesco-d243417.html