Listed companies have been hurrying to implement
their plans to raise their chartered capital to be eligible to list on
the bourse they want. 46 companies listed at the HCM City Stock
Exchange will have to shift to list on the Hanoi bourse if they do not
have VND80bil in chartered capital prior to August 8, 2009.


The actions of companies


DIC, an investment and trade company, has drawn up a
plan on raising chartered capital from VND67bil to VND82bil. “We may
fulfill the capital increase to over VND80bil by June 2009 in order to
be eligible to stay on the HCM City bourse,” said Thuy Nga, Finance
Director of DIC.


GMC, a garment and trade company, is also one of the
companies which must raise chartered capital if it wants to stay in HCM
City. Under the plan on raising capital, existing shareholders have to
buy GMC at VND12,000/share with the ratio 5:2, while GMC are being
traded at VND13,000/share on floor.


GMC’s strategic shareholders have deposited VND7bil to purchase 1.6mil shares at VND27,000/share so far.


GMC has been determined to raise chartered capital,
because listing on another bourse is believed would badly affect the
company’s brand name. A listing on the HCM City bourse, which sets
higher requirements than the Hanoi bourse, can help make investors feel
safe when injecting money in GMC.


The HCM City Stock Exchange has sent a document to the
companies which have the chartered capital of less than VND80bil
instructing them to submit plans on capital increases prior to February
28.


The reasonable requirements


Though admitting that the requirements on higher
chartered capital will put difficulties on companies, no one is
protesting the decision.


Le Dat Chi, a securities expert, said: “I strongly
advocate the viewpoint that the companies which do not have the
required chartered capital should have to shift to list on another
bourse."


Chi added that the HCM City bourse (HOSE) needs to
display the commodities with high quality in order to attract foreign
investment and improve the market's liquidity.


“One of the criteria to evaluate businesses is financial capability, including capital scale,” Chi added.


He went on to say that if listed companies have to
shift to list on the Hanoi bourse, they will have to spend a small sum
to move to the bourse and a little time. But he does not think that the
shifting will cause troubles for those business’ operations.


HOSE’s General Director Tran Dac Sinh also said that
the standards required for listed commodities need to be clear in the
period of Vietnam’s integration into the world.


Two bourses competing with each other?


The regulations stipulate that companies with
chartered capital of VND80bil and higher will be listed on HCM City
bourse, while companies with VND10bil will be listed on the Hanoi
bourse. However, the regulations do not clearly stipulate that the
Hanoi bourse can receive listed companies with more than VND80bil in
chartered capital.


HOSE has worked out with ACB’s board of directors on
the bank’s shifting to list on the HCM City bourse. HOSE said that it
will work with every business which can meet the requirements for
listing on HCM City bourse, to shift to list in HCM City.


HOSE is building up a new procedure, which allows
enterprises to automatically shift bourses without having to follow
long formalities.


39 companies listing shares on Hanoi’s bourse are eligible to list on the HCM City bourse.


If there is not a clear mechanism, the two bourses will compete with each other to attract big companies, experts have warned.