Low subscription take-up rate on maiden Vietcombank float

To the end of December 18, there were only about 110 million Vietcombank’s shares ordered to buy, only higher 10% than the share offering of 97.5 million shares of the auction.

The information resulted in the forecast that the formal stock market will soon surge again when the impact of the historical IPO reduced before the share auction scheduled on December 26. The not high gap between the supply and demand has made investors feel secured to hold a certain volume of the bank shares from the share auction. In addition, the bidding price is forecasted to be not high.

Notably, foreign investors only registered to buy about 34 million shares, not too high as compared with the allowable volume of 29.5 million shares.

With the above demand that could change in some days, it is predicted that Vietcombank’s share price would be at about 150,000-160,000 dong per share. Even many investors offered a lower level. Based on the predicted price, if foreign investors take the whole volume of allowable shares, they will spend a part of their capital worth billions of US dollar waiting for Vietcombank’s IPO. Which sectors will the majority of the capital be invested in?

Absolutely, foreign investment funds will not feel satisfied when they finished 2007 with a non-performing money amount adding to bank interest rates while prices of listed share codes slip to the attractive level. Therefore, the initial bidding information of Vietcombank’s share auction is to be opportunity for the formal stock market.

Similarly, if the bank share price is only at 150,000-160,000 dong per share, domestically individual and institutional investors will seek investment opportunities in the listing market.

Investors could buy both Vietcombank’s shares at a not-too-high price and listed shares at attractive prices. Earlier, the slide of the formal stock market was partially due to impacts of Vietcombank’s IPO that is assessed to the largest share auction so far. The Ho Chi Minh Stock Exchange (STC) approved 62 securities companies as auction agencies for the bank’s share auction.

In a recent report of JP Morgan, this is the right time to collect STC listed shares.

 

Category: Finance