The auctions had a total value of VND2.7 trillion (US$111 million).
The HoSE recorded a single successful auction, with Petrolimex divesting 120 million shares (equivalent to a 40 percent stake) in PGBank (PGB) with a value of VND2.56 trillion. On the HNX, there were two successful auctions involving Tia Sang Battery (TSB), selling 3.44 million shares, and EVNNPC auctioning 2.34 million shares. The total value of share auctions on the Hanoi bourse reached nearly VND164 billion.
The decline in share auction activities can be attributed to various factors, including the challenging macroeconomic conditions in 2023. The VN-Index has struggled to surpass the 1,100-point threshold for several months, reflecting the difficult situation in the stock market.
Experts point out that the lack of notable new companies entering the market is one of the reasons for the decline in share auctions. This has led to a continuous decrease in auction values over the years, from a peak of VND130 trillion in 2017 to only VND2.7 trillion last year.
The number of newly listed shares in 2023 remains modest. Both exchanges have listed only nine new stock codes and one fund certificate, with many of them being transferred from UPCoM and not considered entirely new listings.
Companies like Nova Consumer (NCG), Ton Dong A (GDA), and VNG (VNZ) have decided not to list and are only traded on UPCoM. Moreover, several stocks have been delisted from the HoSE and the HNX due to violations of information disclosure regulations and financial losses.
Dinh The Hien, an economic expert, said that the lack of new listings is primarily due to businesses not perceiving the favorable timing for going public. After a challenging year, the stock market has only experienced a slight recovery, making it unfavorable for businesses to raise capital at reasonable costs through IPOs.
"State-owned enterprises face additional challenges in the equitization process as they require strategic partners to participate. However, the global economic difficulties caused by the Covid-19 pandemic have led to a narrowing of operations for many manufacturing corporations and financial investors, making it more challenging for state-owned companies to find strategic investors."
Hien emphasized the importance of a vibrant market with new products and listings. The presence of more listed businesses and quality stocks attracts investors and contributes to the development of the capital market.
