HCMC – Vinhomes JSC plans to buy back 370 million VHM shares, representing 8.5% of the major local property developer’s total outstanding shares.
The share buyback will start after approval from the State Securities Commission of Vietnam (SSC) and public disclosure of the buyback plan, as required by regulations, the firm said. The transactions will be carried out through order-matching or block deals.
The company must complete the buyback within 30 days from the start date, according to regulations. Each trading day, the minimum and maximum purchase volumes must be 3% and 10% of the registered volume, respectively.
Vinhomes said that its shares are undervalued, and the buyback aims to protect the interests of the company and its shareholders.
Following the announcement, VHM shares surged to the ceiling price of VND37,200 per share today, August 7, with trading volume jumping to over 36.7 million shares, the highest on the Hochiminh Stock Exchange.
Based on this price, the firm would spend over VND13.76 trillion on the share buyback.
Vietnam’s benchmark VN-Index today closed up 5.60 points, or 0.46%, at 1,215.88, driven by gains in large-cap stocks. There were 228 winners and 182 losers on the southern exchange.
Stock trade dipped 9.4% in volume and 13.2% in value over the previous session, with 623.8 million shares worth nearly VND14.2 trillion changing hands. Block deals accounted for 113.7 million shares worth VND2.5 trillion.
The VN30-Index, which tracks the performance of the 30 largest-cap stocks, added 0.77 point, or 0.06%, to 1,253.58 points, with 10 advancers and 14 decliners.
VHM-related stocks also rose. VRE advanced by 5.88% to VND18,000 per share, with 21.45 million shares traded. VIC picked up by 2.54% to VND42,350 per share.
In the real estate sector, VHM, VRC, TDH and LDG hit their daily upper limits. HQC rose by 6.21% to VND3,590 per share and OCG increased by 5.11% to VND6,170 per share.
The HNX-Index added 1.5 points, or 0.66%, to 227.95 points, with 110 stocks advancing and 67 others dipping. Trading volume on the Hanoi exchange totaled 43.4 million shares valued at VND900.2 billion.
