Nearly 120 million shares of the agricultural , consumer goods, and retail company under Nova Group have been approved for trading under the ticker symbol NCG.
According to a recent decision by the Hanoi Stock Exchange (HNX), Nova Consumer Group Joint Stock Company has been registered to trade its shares on the UPCoM market. The total number of shares is approximately 119.8 million NCG shares, equivalent to nearly 1,198 billion VND.
A company representative stated that the listing process is currently only at the licensing stage, so there is no information yet regarding the official listing date and the reference price for the first trading day.
Currently, investors trade most actively on the HoSE and HNX exchanges. HoSE has the largest market capitalization and trading volume, along with strict listing regulations, including the requirement that companies must have been profitable for two consecutive years prior to listing. UPCoM, on the other hand, typically comprises shares of companies that are not yet registered or do not meet the requirements for listing on HoSE or HNX.
Nova Consumer, a member of Nova Group, initially operated in the agricultural sector before gradually expanding into consumer goods and retail. NCG made its initial public offering (IPO) in March 2022 at a price of VND 44,000 per share. According to the company's management, this was an attractive price with good growth potential, as its P/E ratio was approximately 15-16 times, lower than the average of nearly 19 times for companies in the same industry. Nova Consumer then expected its shares to be listed on the HoSE stock exchange by the end of April or at the latest by May 2023.
However, by the end of last year, the Ho Chi Minh City Stock Exchange (HoSE) stopped reviewing NCG's listing application because it had not met the required amendments and additions to the documents. In its annual meeting, the company's leadership explained that 2022 was an unfavorable year for the stock market, and HoSE was undergoing organizational restructuring, which delayed the application review process.
Instead, Nova Consumer chose to list its shares on UPCoM. The reason given was to create flexibility in stock trading and to maximize shareholder benefits.
Regarding business performance, the company reported a loss for the first time in the first quarter and continued to do so in the second quarter. Overall, in the first half of the year, NCG recorded revenue of VND 2,140 billion, a slight increase compared to the same period last year. However, financial expenses doubled, resulting in a net loss of VND 31 billion, compared to a profit of nearly VND 185 billion in the same period last year.
This year, Nova Consumer aims to achieve revenue of 5,629 billion VND, a 15% increase. However, the projected profit is down nearly 94%, to approximately 17 billion VND.
Tat Dat
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