Nearly 70 million more shares listed on UpCoM
In this article (5)
Unlisted Public Company Market (UPCoM) welcomed the listing of nearly 70 million shares of five companies on Monday, with share value registered for trading equal to VNĐ693.4 billion (US$31 million).
The five companies are 36 Corporation (G36), Sài Gòn-Nghệ Tĩnh Bear Joint Stock Company (SB1), Hà Nội Water Manufacturing Joint Stock Company No 3 (NS3), Quảng Ngãi Water Supply Sewerage and Construction Joint Stock Company (QNW) and Bridge Joint Stock Company No 12-Cienco 1 (C12).
Listings on UPCoM have witnessed a surge recently. On December 20, five companies were also listed on UPCoM, with total share value equal to VNĐ328.6 million.
The market appeared to be more attractive to investors as many large companies had listed or planned to list on UPCoM, following the regulation that State-owned enterprises which were public companies must register for trading on UPCoM following equitisation, in case they did not meet requirements for listing on the official exchanges.
UPCoM was founded in 2009 and currently more than 400 firms are listed on the market, with capitalisation value doubling the Hà Nội Stock Exchange.
However, its trading value was modest at around one fourth of the northern bourse. More than 140 stocks did not see transactions conducted in the past one month, partly due to investors’ hesitancy over transparency.
Questions & Answers
Q.Why has UPCoM become more attractive to investors recently?
Why has UPCoM become more attractive to investors recently?
The market has become more attractive because many large companies have listed or plan to list there. This follows a regulation requiring State-owned public companies to register on UPCoM after equitisation if they don't meet official exchange requirements.
Q.How does UPCoM's trading value compare to the Hà Nội Stock Exchange?
How does UPCoM's trading value compare to the Hà Nội Stock Exchange?
UPCoM's trading value is modest, standing at approximately one fourth of the northern bourse's trading value. This contrasts with its capitalisation value, which is double that of the Hà Nội Stock Exchange.
Q.What is a contributing factor to the lack of transactions for some stocks on UPCoM?
What is a contributing factor to the lack of transactions for some stocks on UPCoM?
More than 140 stocks had no transactions in the past month, partly due to investor hesitancy regarding transparency. This suggests that some investors have concerns about the clarity of information available for certain listings.
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