VietNamNet Bridge – Several civil engineering construction companies have launched their initial public offerings (IPOs) in recent times, leaving mixed reactions among investors.



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Staff of HNX at the IPO of Cienco 1 -  Photo: Courtesy of HNX

 

 

 

According to the Hanoi Stock Exchange (HNX), the volume of Civil Engineering Construction Corporation No. 4 (Cienco 4) shares which investors registered to buy was 2.6 times higher than that put up for auction on March 25.

Three institutional and 13 individual investors snapped up all of the shares at an average price of around VND14,000 each, 40.5% higher than the starting price. Cienco 4 raised VND226.5 billion from the auction.

Notably, 668 investors were joining the auction, including nine organizations. The highest bid was VND16,100 per share.

The State will hold a 35% stake in Cienco 4 after the firm has sold preferred shares to staff and normal shares to its trade union and strategic investors.

Meanwhile, only eight investors participated in the IPO of Cienco 5 on the previous day, purchasing only 13.47% of the total shares volume put up for sale.

Investors offered the highest bid of VND11,100 per share versus the winning price of around VND10,000 each. The firm got over VND19.2 billion from the auction.

On the same day, Thang Long Construction Corporation sold out all 12.3 million shares at an average price of around VND21,000 each, raising VND258.5 billion.

On March 21, Cienco 1 launched over 16.1 million shares in an IPO with 21 investors taking part. Investors bid for around 17 million shares, 5.2% higher the volume offered.

Closing the session, investors acquired all the 16.1 million shares at an average price of around VND10,000 each.

Speaking to the Daily, a representative of a securities firm said the construction firms are attractive as they belong to the Ministry of Transport. They often win contracts for key infrastructure projects in the country.

However, not all of them are running well and investors have watched the IPOs closely to select good shares, he said.

Source: SGT