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Vietnam rubber producer’s market capitalization shrinks $67.5mln on first trading day

Pham Vu Wednesday | 03/18/2020 09:55

Bear market from coronavirus outbreak awarded the group unfavorable condition over the listing. Photo: tinnhanhchungkhoan

In the first day of trading on Ho Chi Minh City Stock Exchange on Tuesday, market capitalization of Vietnam Rubber Group fell by VND1,600 billion ($67.5 million).

With 4 billion shares moved to Vietnam’s main bourse from the unlisted market, the debut is the second largest listing on the exchange after the listing of the Joint Stock Commercial Bank for Investment and Development of Vietnam.

On the first trading day, GVR shares were traded with reference price at VND11,570 ($0.49) per share. With this price, the market capitalization of the rubber producer is more than VND46,200 billion ($1.94 billion).

However, on the first trading day, GVR share price fell by 3.45%, wiping $67.5 million off the market in only one session.

The group, formerly known as the Southern Rubber Board, raised lower-than-expected $57.7 million from 2018 IPO, much lower than the targeted proceeds of $272 million. This was the most disappointing IPO since early 2018.

The group’s shares officially traded on Unlisted Public Company Market from March 2018 to become the largest enterprise with chartered capital of $1.72 billion and the fourth largest market capitalization, reaching $1.94 billion.

The State currently holds 96.77% stake at the group. An individual shareholder holds over 3% of the corporation's share.

In 2019, GVR recorded net revenue and profit after tax of over VND20,087 billion ($847 million) and over VND3,990 billion ($168 million), respectively.

GVR shares were traded at VND11,000 ($0.46) each on Wednesday, the second trading day. Bear market from coronavirus outbreak awarded the group unfavorable condition over the listing.   

► Vietnam Rubber Group gets approval to list 4 billion shares on main exchange

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