VietNamNet Bridge – The State, the seller of state-owned enterprises (SOEs), fears that it may sell shares at a loss and is thus hindering sales.

The State Capital Investment Corporation (SCIC), a powerful company specializing in making investments in businesses with the state’s money, had to cancel the Docimexco share auction scheduled to take place on December 19, 2014, because no investor registered to buy Docimexco’s shares.

The SCIC set the starting price at a very low level, VND6,000 per share, the lowest starting price level so far.

Docimexco was the first company allowed to sell shares at below face value. However, the low price could not lure buyers.

At the IPO (initial public offering) of the Can Tho Port, which took place on the last day of 2014, only 27,200 out of 13.6 million shares were sold.

An analyst compared the State as a stingy seller, only trying to sell as high as possible. The fear of selling products at a loss has led to a series of mistakes.

First, in most cases, the State only offered to sell a small proportion of shares to the public. Second, it often set prices at levels higher than expected by investors.

Third, the starting prices set by the State are unreasonable. When someone buys shares at VND12,000 per share, he hopes the share price would rise to VND13,000 one day to bring profit. However, in most cases, investors cannot see the opportunities.

Fourth, the stingy seller, unlike other businesspeople, does not offer a discount rate to those who buy shares in big lots. Therefore, it cannot lure venture funds and institutional investors, who are willing to buy shares in large quantities.

Fifth, the state wants to sell large proportions of stakes it holds in holding companies, but tries to hold controlling stakes in subsidiaries.

This means that the state opens doors to invite customers, but then locks all the rooms, and visitors have to sit in the corridor.

The analyst also pointed out that the state does not use the institutions which can help create demand, including equitization consultancy firms.

BSC, a securities company under the Bank for Investment and Development of Vietnam (BIDV), has emerged as a leading consultancy firm which has succeeded in all consultancy cases.

BSC helped BIDV, Vinatex and Vietnam Airlines sell the bank’s stakes at the IPOs, even though it sometimes met difficulties and had to delay the IPOs.

Sources said BSC may act as the consultant when Vinalines, the national shipping firm, is equitized.

“BSC could do what many other consultants could not – find buyers,” he said.

“In order to sell products, the state needs many more BSCs,” he added.

Chi Mai