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Wednesday, July 24, 2024

Price slump leads Hodeco to cancel share sale

The Saigon Times

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HCMC – Ba Ria – Vung Tau House Development JSC (Hodeco), which is listed on the Hochiminh Stock Exchange with the stock code HDC, has decided to cancel its plan to issue 8.6 million shares as HDC share prices have declined steeply.

Between April 4 and 25, HDC plunged 38.1% from VND105,000 to VND65,000 and was among the biggest decliners on the southern bourse.

Earlier, Hodeco announced its share sale plan at its shareholders meeting scheduled for March 31. The housing developer planned to sell 8.6 million individual shares at a minimum of VND100,000 per share. The firm expected to mobilize at least VND860 billion via this share issue.

The shares would not be transferable for one year from the date of issuance. The company was set to use the money earned from the share issuance for expanding its land fund, replenishing its working capital, and making investments in line with the firm’s development strategies.

As for its business plan in 2022, HDC looks to make total investments of over VND4.1 trillion, earn over VND1.9 trillion in revenue and over VND429 billion in after-tax profit, up over 245%, 35%, and 38% against 2021, respectively.

Closing the session today, HDC soared to its upper limit of 6.92% at VND69,500.

As for the benchmark VN-Index of the HCMC market, it added 30.42 points, or 2.32% against the previous session at 1,341.34, with 338 winners and 105 losers. More than 727 million shares worth over VND21 trillion were transacted on the southern bourse, falling 13% in volume and 15% in value over the session earlier.

On the northern bourse, the HNX-Index gained 7.66 points, or 2.27% compared to yesterday to close at 345.17, with 172 advancers and 64 decliners.

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