HCMC – The Hochiminh Stock Exchange (HoSE) canceled conglomerate FLC Chairman Trinh Van Quyet’s sale of 74.8 million FLC shares on January 10 due to his failure over information publicity prior to the transaction.
The decision was made following a request from the State Securities Commission of Vietnam (SSC), the HoSE announced yesterday evening, January 11.
Quyet registered to sell 175 million FLC shares to reduce his ownership in the company from 30.34% to 5.7%. However, the SSC only received a report of his transaction at 5:45 p.m. on Monday. By then, Quyet had already sold 74.8 million FLC shares.
Prevailing regulations require major shareholders to announce planned stock sales in advance.
FLC closed at a floor price of VND21,150 with 134.96 million shares changing hands on January 10.
During the session, the stock also shot up to the ceiling price of VND24,100. Quyet’s sale of 74.8 million shares would have earned VND1.8 trillion at that price.
On January 11, shares of the FLC family were sold off, with FLC, ROS, AMD and HAI having approximately 300 million shares traded in total, accounting for nearly 25% of the southern bourse’s trade volume.
FLC broke its own liquidity record with 155 million shares sold off.
Besides canceling the FLC Chairman’s transaction, HoSE has also frozen his accounts following his trading violations.
