State Capital Investment Corporation (SCIC) failed to sell any of the 5.12 million An Giang Import-Export Company AGM shares on offer with no investor subscribing for the shares. Earlier, SCIC and MB Securities (MBS) announced they would sell the shares, which accounted for more than 28 per cent stake in An Giang Import-Export Company at VND19,000 (US$0.89) per share at an auction in Ha Noi on September 29.
However, no registration was recorded until September 28, and therefore, the auction was not held.
According to data, it was the second time SCIC failed to sell these shares. In August 2015, SCIC offered each share at the starting price of VND19,200, even though share value on the market at that time was between VND9,500 and VND 9,900.
A similar situation occurred this time round. SCIC asked for a price of VND19,000 per share, although AGM's shares were being traded for some VND10,000 on the HCM Stock Exchange . On September 15, when the share price reached its peak, each share was valued at VND12,050, still lower than the asking price.
According to local media, SCIC's offer price for AMG shares was too high.
Established in 1976 in An GIang Province, AGM was equitized in 2008 and listed on the local market last year. Based in the south of Viet Nam, it is one of the leading local enterprises in food, agricultural material and commercial service.
According to reports, in the first six months of 2016, AGM reached sales worth VND912 billion and profit after tax of VND1.3 billion.
Currently, Nguyen Kim Development and Investment JSC is the major shareholder in AMG with 51.8 per cent stake. SCIC is the second largest shareholder with 28.17 per cent stake.