Seminar urges firms to list shares overseas

Wednesday, May 21, 2008
More enterprises should try to list shares overseas as a more effective channel for raising capital, says Nguyen Ngoc Canh, head of International co-operation under the State Securities Commission (SSC).

Speaking at a conference yesterday in Ha Noi entitled A Step into Globilisation Through IPOs and Listing, Canh admitted, however, that Vietnamese firms are facing many difficulties in listing on foreign stock exchanges due to their inexperience on the domestic stock market and a lack of information about regional stock exchanges.

This was why many domestic firms with statd plans to list offshore, including Vinamilk and Saigon Securities Inc., have not yet carried out those plans, he said.

An enterprise seeking to list offshore normally would also expect to spend eight months to a year completing a typical listing process, in addition to pre-listing preparations.

"Nevertheless, we are confident that Vietnamese companies will explore and seek various means to tap into international capital for funding as well as a platform to expand and integrate into the international business community," said Alvin Chew, executive director of the Singapore-based financial advisory firm ICH.

Due to political, cultural and business affinity, Vietnamese enterprises have tended to list shares on regional stock exchanges, such as in Singapore. Foreign enterprises currently represented about 38 per cent of listed shares on the Singapore Stock Exchange, with a market capitalisation of US$165.24 billion.

"This number suggests that the Singapore Exchange is a very good destination for domestic firms seeking to list abroad," Canh said. "The firms themselves must follow listing procedures strictly in order to make the listing process as quick as possible." (VNS)