Shares of Techcom Securities JSC jumped in their Tuesday trading debut as the broader market recovered from a selloff the previous day over concerns about corporate bond issuance violations.
The stock rose 6% as of 9:24 a.m. local time to 49,600 dong per share on the Ho Chi Minh City Stock Exchange after the company listed about 2.311 billion shares at an initial price of 46,800 dong each. That gave the company, a unit of Vietnam Technological and Commercial Joint-Stock Bank, a market value of around 114.6 trillion dong , placing it among the largest stocks in the benchmark VN Index.
The index rose as much as 1.1% after tumbling more than 5% on Monday amid renewed concerns that tighter scrutiny of corporate bond issuance may once again freeze credit and weigh on growth.
Read: Vietnam Stocks Sink 5% on Fears of Renewed Credit-Market Squeeze
The brokerage firm raised about $410 million in its oversubscribed initial public offering last month. There were bids for more than 575.16 million shares, more than twice the offer of about 231.15 million shares. Techcom Securities set a pro rata allocation in which each investor received 40.18% of the shares they registered to purchase.
Vietnam’s IPO and listing activities have gained momentum this year, driven in part by a 29% rise in the benchmark VN Index. That has boosted investor appetite and encouraged companies to tap into equity markets for capital.
Vinpearl JSC, the hospitality unit of Vietnam’s biggest conglomerate Vingroup JSC, started trading its shares on the Ho Chi Minh City Stock Exchange in May after an IPO that raised about 5 trillion dong. Finance company F88 Investment JSC began trading on the Unlisted Public Company Market in August.
VPBank Securities JSC, a unit of Vietnam Prosperity Joint-Stock Commercial Bank, said it planned to raise at least 12.7 trillion dong in an IPO, which is running from Oct. 10-Oct. 31. The company aims to list their shares in December.
Hoa Phat Group also announced a plan for its agriculture unit Hoa Phat Agriculture Development JSC to go public. It expects to list the shares on the Ho Chi Minh City Stock Exchange as early as December.
This article was generated from an automated news agency feed without modifications to text.
