Why is the stock price nearly 260,000 VND but no one buys it at 10,000 VND?

VNECO4 Electricity Construction Joint Stock Company (stock code VE4) cannot issue more than 1 million shares even though the offering price is far lower than on the stock exchange.

VNECO4 Electricity Construction Joint Stock Company has just announced the results of its private offering of more than 1 million shares which was unsuccessful due to no investors participating. This result was surprising as the issuance price of VE4 shares was only VND10,000, 96% lower than the trading price on the Hanoi Stock Exchange at VND259,400.

Previously, a strategic investor registered to buy all of the more than 1 million VE4 shares offered in this round was Mr. Nguyen Giang Nam. However, Mr. Nam sent a written notice about not paying to buy the above privately offered shares. This is the reason why the company's issuance was unsuccessful. Mr. Nguyen Giang Nam currently does not own any shares in VE4.

VNECO4 is an electrical construction unit in many projects.

PHOTO: VNECO4

According to the documents of the 2025 Annual General Meeting of Shareholders, VE4 submitted a plan to offer 2 million shares privately, double the size of the previous round. The shares offered will be subject to transfer restrictions for 3 years for strategic investors and 1 year for professional investors. The expected issuance date is in 2025, after receiving approval from the State Securities Commission. The offering price will be decided by the Board of Directors at the time of implementation. The share offering aims to increase the company's charter capital to over 30 billion VND, meeting the regulations for enterprises listed on the Hanoi Stock Exchange before January 1, 2026.

The company suffered consecutive losses in 2022 - 2023 and in 2024 only made a profit of about 500 million VND. Entering the first quarter of 2025, the company made a profit after tax of more than 55.7 million VND, but by March 31, it still had an accumulated loss of more than 4.5 billion VND. VE4 shares have been put under control and are still in this state but continue to increase.

In 2025, VE4 aims to have a revenue of more than VND115 billion and a profit after tax of about VND922 million. The company said it will actively bid to find jobs to increase revenue and thereby increase profits; thoroughly implement cost savings in operations; closely follow the market to select contracts to purchase supplies and materials at the most competitive prices to reduce input costs... to gradually reduce accumulated losses on financial statements in the shortest time.

Source: https://thanhnien.vn/vi-sao-co-phieu-gia-gan-260000-dong-nhung-ban-10000-dong-khong-ai-mua-185250624112710252.htm