A series of billion dollar businessesrushed to the stock exchange after a decade of hiding and quickly became pillars of the stock market. These billion-dollar gems that domestic and foreign investors are waiting for could create a large capital flow, helping the economy develop.

The precious gem revealed

In just a short period of time in late 2016 and early 2017, the Vietnamese stock market has been flooded with stocks that both domestic and foreign investors have been waiting for over the past decade.

After many years of stirring up the over-the-counter (OTC) market, FOX shares of FPT Telecom Securities Company (FPT Telecom) were listed on UPCOM at the beginning of the new year 2017. This stock immediately made waves, doubling in price within a few days.

The price increase of FPT Telecom is similar to that of a series of “giant” stocks recently listed on the stock exchange. It makes many investors regret not being able to buy before the time when these key stocks of the industry were listed on the stock exchange.

A series of leading stocks were divested. Photo: Internet

Previously, beer stocks such as Sabeco (SAB) and Habeco (BHN) made waves in the stock market with unimaginable breakthroughs, from a reference price of a few tens of thousands of VND to over 200,000 VND/share.

With a price of VND220,000/share, Sabeco immediately became the second largest company in terms of capitalization on the stock market (6.3 billion USD), just behind Vinamilk (over 8 billion USD). This is also a stock that has great appeal to foreign investors. Currently, foreign investors only hold 9% of this stock, 89% belongs to the Ministry of Industry and Trade.

With the simultaneous appearance of billion-dollar enterprises, the scale of Vietnam's stock market has skyrocketed. If 10 years ago, Vietnam's stock market only had 2-3 enterprises with billion-dollar capitalization, now this number has reached dozens of enterprises.

Big stocks like Sabeco, Habeco, Vietnam Airlines, Vietjet Air, Petrolimex,... are really stirring up the stock market.

Right in the first days of the new year 2017, Vietnam Airlines' HVN shares were listed on the stock exchange and also made many investors regret for being indifferent and not buying when Vietnam Airlines issued its initial public offering (IPO) in 2014.

The price of more than 1.3 billion HVN shares skyrocketed, up to 40% on the first day of launch, bringing the company's value to over 2 billion USD. The impressive debut along with bright market expectations made Vietnam Airlines shareholders very happy at the beginning of the new year.

Of course, the organizations that invested in such stocks could see huge profits, double the capital, or even more. Vietcombank and Techcombank are the two banks that bought up to 99% of the total volume offered by HVN in the IPO.

New opportunities for the economy

From a price of about VND80,000/share on the OTC market, Sabeco has nearly tripled in a short time. The appeal of newly listed stocks in recent times is huge and understandable.

This is considered a gem, an industry leader with dozens of subsidiaries and affiliates. A series of foreign investors such as: SABMiller, Thai Beverage, Shingha, Heineken, Ab-Inbev, Asahi,... are lining up to buy this stock after nearly a decade of waiting since the company was equitized in 2008.

The decision to raise Sabeco and Habeco combined with the Government's plan to accelerate divestment along with the quality of these stocks has made the domestic and foreign markets excited and eager to buy.

Recently, ACV shares of Vietnam Airports Corporation have also become a phenomenon on the stock market. The company entered the billion-dollar club as soon as it was listed on the stock exchange with a total capitalization of nearly 5 billion USD.

ACV is considered a monopoly enterprise in the field of transportation exploitation, management of investment in construction of aviation infrastructure with large and steady cash flow and profits from 22 domestic airports and 8 international airports such as: Tan Son Nhat, Noi Bai, Da Nang... Meanwhile, the growth rate of Vietnam's aviation industry in recent years has been very high, several times higher than the world average. In the near future, ACV will invest in the construction of Long Thanh Airport.

In the IPO session at the end of 2015, more than 80% of ACV shares were auctioned by foreign investors. After just over a year, investors who bought shares in the IPO made a profit of nearly 4 times. With this breakthrough, this is a favorable basis for the next divestments of ACV.

It can be seen that the benefits of listing large stocks are now clear. The size of the stock market has skyrocketed recently, tens of thousands of billions of dong are rushing to the floor in each trading session. Besides state-owned enterprises, private enterprises are also quickly listed to find capital for long-term investment.

Recently, VietJet Aviation Joint Stock Company (Vietjet Air) also had a stock introduction session. This is also a company that holds a large market share in the industry and has a fast growth rate. According to Reuters, this company is worth 1.2 billion USD.

The explosive growth of the stock market is considered a good signal to help the Government divest capital from enterprises. In 2017, according to the plan, the Government will continue to divest capital from many large enterprises, including Vinamilk, Sabeco and Habeco. Particularly for Sabeco and Habeco, the sharp increase in stock prices can help the State earn billions of USD.

Post-listing divestment is a policy of the Government with the aim of maximizing capital for the State and preventing interest groups from running rampant. Post-listing divestment is expected to attract more investors. Investors will know more about the enterprises and will no longer be afraid of their money being buried because the enterprises avoid listing. The Government also plans to increase the foreign ownership ratio in banks and expand foreign investors' access to the stock market.

According to Vietnamnet