Analysts say a lot of investors who successfully won the right to purchase Vietcombank’s shares at its IPO on December 26, 2007, may give up their deposit and not take the plunge.

 

Vietcombank IPO, December 2007

Currently, Vietcombank’s shares are selling at VND104-106,000/share on the OTC market, meaning investors who were buzzing with excitement about the offering are now unhappy.

 

Hung, an investor on the Haseco trade floor said that he has decided to relinquish his small stake; though he will to lose his security deposit.

 

“I agreed to pay VND120,000/share, but I can buy them for VND105,000/unit on the OTC market now, so it is cheaper to buy Vietcombank that way, even if I lose my security money,” he said.

 

Analysts say other investors, who paid VND118,000/share and higher at the IPO, will make the same decision as Mr. Hung.

 

Currently, Vietcombank is losing value on the OTC market. Right after the results of IPO were announced, the bank’s shares were selling at VND110,000/share, but the price has now dropped to VND104-105,000.

 

Analysts say bids of VND120,000/share and higher were made for 1/5-1/4 of total shares offered. Consequently, it is estimated that several million shares, which were registered will be left un-purchased. January 25 is the deadline for investors to make payment.

 

If too many investors give up bids, it will adversely impact the stock market. In fact, the official bourse has been lackluster since the end of 2007, when investors rushed to sell stock and shifted to other investment channels. Some of them hoped the market would recover after Vietcombank’s IPO. However, the shoddy results of this auction may have finally shattered their hopes.

 

(Source: DTCK)

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