Friday 13 July 2018

WHY IPO VIETNAM BECOME THE MOST ‘HOT’ IN SOUTHEAST ASIA ?

Posted by at 2:46 PM

WHY IPO VIETNAM BECOME THE MOST ‘HOT’ IN SOUTHEAST ASIA ?

Business and market analysts said that in 2017, the IPO market (Vietnam's first public offering) increased to $ 6 billion. The booming economy coupled with the expansion of the middle-income people has created a huge buying power and contributed to boosting Vietnam's stock market with many of the largest IPOs in Southeast Asia, data from Bloomberg.

Vinhomes's $ 2 billion offering could become the largest-ever deal. Techcombank also plans to raise $ 922 million in its upcoming IPO.

In parallel with the IPO, the sale of state capital is expected to be active, according to Decision 1232 of the Prime Minister, 2018 will divest 181 companies, accounting for over 70% of the total number of enterprises in the plan for divestment of the Government in 2018-2020.

Accordingly, on average, about 15 enterprises will withdraw their capital, excluding the number of enterprises moving from 2017 and the number of enterprises that SCIC has withdrawn from private planning.

OPPORTUNITIES IN IPO !!!

Particularly, when stocks have "seniority" in the market, the business story is relatively clear and sporadic, the IPO, divestment or new listing will attract attention of the market by bringing in "the mysterious, unexpected factor." Not only expectation at attractive prices, but the escape of the "shadow" State, change of controlling shareholder ... will help bring new wind in the management, operating, improving the performance of the business. thus improving the stock market value, improving the portfolio value of investors.

Over the waves of the early years of this decade, Vietnam's economy is very 'healthy'. Vietnam's GDP grew by 7.4% in the first quarter of 2018, the highest level in a decade. Representative of the rise of Vietnam is Vingroup. The group began construction on September 2, 1977 of a factory producing automobiles and motorbikes called VinFast in Hai Phong, with an investment of $ 1 to $ 1.5 billion in the first phase.

Vietnam is considered by Bloomberg to be the next world's factory in Asia in the context that US President Donald Trump is considering rejoining the Trans-Pacific (TPP) trade agreement.

With a favorable macro-basis, the medium-term growth trend of the market will be strengthened. In particular, the story of IPO, divestment of capital will still be the highlight, bring "the new wind" and open the door for investors to choose, seeking profit opportunities.