Recent declines in the stock market have delayed the listing plans of many companies and stymied the reorganisation plans of State-owned enterprises hoping to raise capital via the nation's stock exchanges.
Among the latest companies to delay listing plans, Sai Gon Thuong Tin Real Estate Joint Stock Company (Sacomreal) has postponed the August 25 date it had set for interested buyers to register deposits on its initial public offer.
Sacomreal General Director Dang Hong Anh said the company had planned to list 100 million shares on the Ha Noi Stock Exchange this year but further execution would depend on market developments.
Sacombank Securities Company, HCM City Securities Company and Thang Long Securities Company – three consultants on the Sacomreal listing – had all advised the company to postpone its debut.
Anh said a new registration date would be announced when the market improved.
Petro Capital and Infrastructure Investment Joint Stock Company (Petroland), which had been slated to list on the HCM City Stock Exchange in early July, also put its IPO on hold.
Petroland General Director Bui Minh Chinh said the company's listing had been approved but that it was considering the timing carefully in light of current unfavourable market conditions.
A number of commercial banks, including Saigon-bank, Trustbank, Western-bank and Navibank, earlier postponed their debuts, many citing difficulties raising capital to meet the State Bank of Viet Nam's tougher capital requirement this year, as well as the poor recent performance of bank shares on the two stock exchanges.
State-owned oil and gas giant PetroVietnam had also projected that 28 of its subsidiary companies would make IPOs this year, but has now rolled that estimated back to 12-13 companies.
PetroVietnam has shifted its strategy for realising capital from its subsidiaries by attempting to sell stakes to foreign investors. South Korea's Huyndai, for instance, is in negotiations to buy a 10-per-cent stake in PetroVietnam Construction (PVX).
State-owned construction giant Vinaconex (VCG) had also planned to restructure its capital contributions in 34 subsidiaries in 2009-10 but has so far withdrawn capital from only 13 companies, all of them unlisted.