White on the buying side at the beginning of the week
Following information related to stock manipulation, from the beginning of the trading week, all three stocks API, APS, and IDJ were under strong selling pressure when there was no liquidity on the buying side with the amount of shares remaining for sale at the floor reaching millions of units.
With the lowest market price being Asia- Pacific Investment Corporation (HNX: API), in the trading session on June 26, this stock had a dramatic decrease of 9.52%, down to the floor price of VND 11,400/share, with a remaining floor price of 6 million units.
In addition, Asia Pacific Securities (HNX: APS) shares also had a similar decrease of 9.8% to the lowest level of VND 12,900/share, with a floor selling surplus of 12 million units.
IDJ Vietnam Investment shares (HNX: IDJ) decreased 9.8% to VND11,900/share, with nearly 20 million units remaining for sale without any corresponding buy orders.
API and APS suffered "no buyers" in the first session of the week.
Although all three companies have made statements that they are not related entities and/or have activities related to the above incident.
At the same time, it said that the incident did not affect or change the long-term orientations and normal operations of the companies, nor did it affect the rights and legitimate interests of customers, shareholders and partners who are transacting and cooperating with the company.
But in reality, investors continue to place sell orders on all of the above stocks, causing the market price to fall vertically without any support from demand.
All three of these stocks once increased 20 times, from around VND 4,000 - VND 5,000/share to VND 45,000/share (November 2021) in less than a year.
The shocking increase of this group of stocks received special attention from investors, demonstrated by the fact that capital raising issuances were easily absorbed.
The never-ending stock issuance plan
APS shares, with an initial "ice tea" price of around VND 5,000/share, accelerated sharply to a historical peak of VND 59,900/share on November 18, 2021, increasing 14 times in value.
Taking advantage of the favorable market conditions at that time, Asia-Pacific Securities promoted capital raising through private offering of shares and to existing shareholders.
In particular, the main large-scale mobilizations include the issuance of 3.9 million private shares (closing date of the offering is November 8, 2021) and the offering of 39 million shares to existing shareholders (September 14, 2021).
Similar to IDJ Vietnam Investment, IDJ shares also rose 5 times higher than the average market price, reaching a peak of VND 42,470/share in the trading session on November 18, 2021. However, IDJ's price then suffered the same situation of "falling without support", up to now, this stock is only VND 13,200/share, down 69%.
This is also the stage where the company chooses to increase capital by issuing additional shares. In February 2021, IDJ successfully issued 32.6 million shares to the public at a price of VND 10,000/share.
Notably, 3.7 million undistributed individual shares were purchased by APS, including Ms. Mai Thuy Van, Ms. Pham Thi Tuoi, Ms. Tran Thi Dat - APEC, Ms. Le Thu Huong - APEC, Ms. Pham Thi Duc Viet - Head of the APS Supervisory Board. In 2022, on March 9, IDJ also continued to successfully issue 73.5 million shares at a price of VND 10,000/share.
Unlike the two members above, Asia-Pacific Investment did not offer shares privately or to shareholders. In September 2022, API chose to pay bonus dividends by issuing 45.8 million shares.
This is also the time when the market price is gradually decreasing after the peak period, forming a pine tree chart. When the API market price was in a strong growth phase, this stock reached a historical peak of VND 45,650/share (pre-adjusted price was VND 4,000-5,000/share) in November 2021, 6 times higher than before the increase.
However, right after reaching the historical threshold, API shares turned around and fell too quickly and too deeply, down to 12,600 VND/share, equivalent to a 72% decrease in value after 7 months.
Although in 2021, all three of these stocks recorded historical peaks, but in 2022, when the market trend went down, the Board of Directors of these enterprises on the same day, December 22, 2022, issued a Resolution to withdraw the plan to offer shares to existing shareholders.
How much of the shares are diluted?
By 2023, the plan to issue shares to increase capital has continued. Specifically, IDJ's Board of Directors has approved the plan to issue more than 173 million shares to existing shareholders, the offering price is not lower than VND 10,000/share, the right exercise ratio is 1:1.
In addition, the company also plans to pay dividends in 2022 in shares with an issuance rate of 4%. The actual ratio is 100:4 (each shareholder owning 100 shares will receive 4 new shares).
In parallel, the Board of Directors of API also approved the implementation of the plan to issue more than 84 million shares to existing shareholders. The exercise ratio is 1:1. The offering price to shareholders is not lower than VND 10,000/share.
In addition, the plan to issue individual shares to increase the company's charter capital has also been approved. Accordingly, API plans to offer 40 million shares at a price not lower than VND10,000/share.
Only APS did not submit a plan to issue shares to existing shareholders. Instead, the Board of Directors at APS approved the content of issuing 100 million shares privately to professional securities investors at a price not lower than VND10,000/share.
After a period of continuous issuance of shares to increase capital and distribution to retail investors, the number of shareholders in APS, IDJ, APS increased several times. However, the ownership ratio of shareholders attending the annual shareholders' meetings continuously decreased.
To hold a General Meeting of Shareholders, the number of attendees must be large shareholders, controlling shareholders, with little presence of small investors. Therefore, experts assess the proportion of voting shares attending the General Meeting of Shareholders as an important criterion to measure the level of dilution in the ownership structure of a public enterprise.
Apec Securities Annual General Meeting 2023.
At APS's 2023 General Meeting of Shareholders, the company had to organize it for the second time to be successful when the percentage of shareholders attending was just under 33.3% of the total number of shareholders.
While in previous years, more than half of the company's shares were held by only a few dozen shareholders. It is known that APS has up to 14,266 shareholders - one of the enterprises with a large number of shareholders on the stock exchange, in which the largest shareholder is Mr. Nguyen Do Lang - General Director with a holding ratio of 14.3%.
For API, the company also recorded a shareholder attendance rate of only 61.03% at the 2023 General Meeting of Shareholders, the lowest attendance rate in the 2018-2023 period. By the end of 2022, API's charter capital was VND 841 billion, of which Mr. Nguyen Do Lang and his wife - Board of Directors members - accounted for 29.4% of the shares.
Meanwhile, since the two capital increase phases of 2021-2022, the proportion of shareholders attending IDJ's 2023 General Meeting has also decreased sharply to 50.27%. Up to now, IDJ's charter capital has reached VND 1,470 billion, but the shareholder structure has not been mentioned. As of April 13, 2023, the total number of shareholders of this company is 14,857, nearly 3 times higher than 2 years ago .
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