14:56 | 12/05/2017 Investment
Recent returns have shown that investments in pre-listing companies promise big gains for investors who make bets on the firms with impressive business results and clear listing plans.
|A Siam Brothers Vietnam warehouse (Source: VNA)|
Speculations in recent listings such as budget airline Vietjet (VJC) and real estate developer Novaland Investment Group (NVL) have brought investors returns of over 40 percent. Prices of these shares climbed 43-46 percent in only one to two months of listing.
Investors who bought shares of Vietnam National Petroleum Group (PLX) when it made the initial public offering earned profits of nearly 230 percent.
PLX price soared to 49,000 VND (2.16 USD) on its April 21, 2017 debut, far exceeding its IPO price of over 15,000 VND in 2011.
These return rates have outperformed the benchmark VN-Index, which has expanded just around 8 percent this year.
Similar success is expected in the coming listings of Siam Brothers Vietnam Joint Stock Company and Kido Frozen Food Joint Stock Company.
Siam Brothers Vietnam, a Thai manufacturer for rope and net used for fishing, maritime transportation and agricultural sectors, will list 20.54 million shares with the sticker SBV on May 16 on the HCM Stock Exchange at the reference price of 40,000 VND a share.
The 60-year-old company holds a 40 percent market share of the fishing lines. 90 percent of the Vietnamese offshore fishing fleets are using specialized rope manufactured by Siam Brothers Vietnam.
The company’s shares are trading around 45,000-48,000 VND apiece on the Over-the-Counter (OTC) market, a rise of 36.4 percent over its IPO price of 33,000 VND in September 2016.
With a high dividend rate (mostly over 40 percent in cash since 2011) and good profit growth (39 percent in 2016 and 15-23 percent in the next two years), its share prices are expected to increase when it starts trading this month.
Share prices of Kido Frozen Food (KDF) are also increasing on the OTC market, trading around 58,000-60,000 VND a share, up 11.5 percent over its IPO price in March this year.
Kido Frozen Food is the country’s leading ice-cream market leader with a 35-per-cent market share in 2016. It reported after-tax profits of nearly 143 billion VND (6.2 million USD) last year, a year-on-year growth of 85 percent.
The company plans to debut shares on the HCM Stock Exchange in the third quarter of 2017.