First Vietnamese enterprise sell its shares abroad

Kinh Do Holding Company in Ho Chi Minh City has recently issued its shares at the international financial investors in the Singaporean Raffles Conference Holding Centre, the Ministry of Finance announced

Kinh Do Holding Company in Ho Chi Minh City has recently issued its shares at the international financial investors in the Singaporean Raffles Conference Holding Centre, the Ministry of Finance announced.

This is the first time, a Vietnamese company sold its shares abroad, moving toward listing shares on the regional securities market.

The representatives from over 30 investment funds, banks, stock companies from Singapore and foreign countries participated in the meeting introducting Kinh Do’s shares. Among them, the big names included: Tamasek Holdings, Phillip Capital, Aberdeen Asset Management, Maybank, UOB, OCBC.

According to Tran Le Nguyen, General Director of Kinh Do, in the August, the company will issue 50 billion VND of shares in order to increase the chartered capital of 200 billion to 250 billion VND.

Speaking at the meeting, Jerremy Whitley, senior investment director of Aberdeen Asset Management Asia Ltd said: “I received various information on Vietnam from this meeting, from the Vietnam economic growth, development degree of the capital market, personnel standards. All things I had from the meeting make me to pay some certain attention to Vietnam and its securities market”.

The other comment that Kelvin Lee, the VinaCapital Group representative of the Southeast Asia – the organiser, not only pointed out the information on Kinh Do shares to foreign investors and also encouraged them to pour capital into the other companies. He said: “There are many Kinh Do in Vietnam and investment opportunities in Vietnam remain”. So, we reserved a part to introduce about the Vietnam economic growth, capital market and national personnel standards.”

Listing abroad will help Vietnamese businesses improve their images on the international market. As the comments from Alex Tan Kah Koon, vice president of business financial consultancy of Westcomb Financial Group said: “Basing on financial indexes only, Kinh Do is qualified for listing in Singapore ”.

However, he added: “There are still more troubles in Vietnam’ s legal framework in allowing the domestic businesses to sell their shares abroad”. According to the securities experts, in order for businesses selling shares abroad, Vietnam needs to have some legal documents on supervising the transactions listed with that nation in order to manage the transactions opened among the two nations.

(Source: CPV)