Corporations sell huge volumes of shares
As the price of many shares are at a peak, many domestic and foreign organizations have sold large numbers of stocks to focus on investment resources for a future direction.
According to the Ho Chi Minh City Stock Exchange (HOSE), Vingroup Group (VIC) of billionaire Pham Nhat Vuong registered to sell more than 100 million shares of Vinhomes Joint Stock Company (VHM) from August 19 to September 17. If it is successful, Vingroup will reduce its ownership rate to 66.66%, equivalent to 2.23 billion Vinhomes shares.
Kohlberg Kravis Roberts (KKR) foreign fund has also registered to sell 31.94 million shares of Vinhomes by order matching or negotiation forms during the same period (August 19 to September 17). If the transaction is successful, KKR will only own 4.6% of Vinhomes shares, equivalent to 153.8 million shares, and will no longer be a major shareholder in the top real estate firm in Vietnam.
The number of shares KKR registered to sell is part of the 6% Vinhomes shares that KKR bought in June 2020 for VND75,000 per share. With the current price of VND110,000 - VND120,000 per share, KKR will make a significant profit.
KKR sold Vinhomes shares to implement a business plan, while billionaire Pham Nhat Vuong needs capital to invest in subsidiaries and implement a new strategy with the goal of becoming a global technology - industry - service corporation by 2028.
Recently, Vingroup stepped up investment in Vinfast with a campaign to conquer the US electric car market.
With more than 100 million shares of Vinhomes registered to sell, it is estimated that Vingroup will collect nearly VND12 trillion.
Recently, many major shareholders have sold and registered to sell key stocks on the Vietnamese stock market when their price reached historic highs.
According to HOSE, the largest shareholder of SSI Securities - Daiwa Securities Group Inc - sold 15.3 million SSI shares (2.33%) and reduced its ownership rate to 15.67%, equivalent to nearly 103 million shares.
En Fund L.P also sold more than 23.4 million SSI shares (3.56%) on August 19 and reduced its ownership to 3.57% and is no longer a major shareholder of this securities company.
SSI stock recently hit historic highs and has increased by nearly 90% against earlier this year.
According to the Hanoi Stock Exchange (HNX), foreign fund Access SA, SICAV-SIF- ASIA TOP PICKS registered to sell over 3.3 million shares of VNDIRECT Securities JSC, equivalent to 0.78% of the charter capital. The transaction is expected to be carried out from August 24 to September 22, 2021 through agreement and order matching.
The price for VNDIRECT share increased five times in the past five months. In the offering in June, Access SA, SICAV-SIF- ASIA TOP PICKS bought more than 3.3 million newly issued shares of VNDIRECT at the price of VND14,500 per share. Currently, the price is at the historical peak of VND52,000 - VND53,000 per share.
Not only large shareholders have registered to sell shares, but many businesses have sold tens of millions of treasury shares to collect tens to hundreds of billions of VND amid a sharp increase in stock prices and free cash flow still pouring into the stock market when production and business activities have stalled under the impact of the Covid-19 pandemic.
In early August, Vinhomes sold all 60 million treasury shares for nearly VND109,000 per share. Petrosetco also sold 2.4 million treasury shares. Khang Dien House has registered to sell nearly 20 million treasury shares.
Vietnam’s stock market suffered a steep decline on Monday as market sentiment was pressured by worries about the broader spread of the coronavirus across the country.