Big corporations on the verge of stock market debut

This year promises a flurry of new faces on the stock market, as several major companies gear up for initial public offerings (IPOs).

Notable industry giants such as Vingroup, Mobile World Investment Corporation, FPT Retail and Hoang Anh Gia Lai are all preparing to introduce their prized stocks to the public sphere.

In addition, multi-billion-dollar enterprises are set to transition to the Ho Chi Minh City Stock Exchange (HoSE), marking a significant shift in the market landscape.

One standout event set to captivate investors is the coming trading debut of 3.1 billion shares of Binh Son Refining and Petrochemical Co., Ltd. on January 17.

With an initial reference price of VND21,300 per share (US$0.84), Bình Sơn Refining is valued at more than VND66 trillion, equivalent to over US$2.6 billion.

The company boasts a charter capital exceeding VND31 trillion, with Vietnam Oil and Gas Group (PetroVietnam) holding over 92% of the shares.

As one of Vietnam's three major oil refining plants, alongside Long Son and Nghi Son, Binh Son Refining's move to HoSE is expected to enhance transparency, elevate corporate governance standards and potentially secure a spot in the VN30-Index following six months of trading on the southern bourse.

Another promising contender generating investor anticipation is Masan Consumer (MCH), a subsidiary of Masan Group.

Recently, the Board of Directors of Masan Consumer officially approved plans to list MCH shares on HoSE, with a target completion date in the second quarter of 2025.

Originating in the seasoning industry, it has diversified into eight key consumer goods sectors in Vietnam, boasting five brands with annual revenues ranging from US$150-250 million.

The soaring market price of MCH shares, surpassing VND231,000 per share, has propelled Masan Consumer's market capitalisation to over VND164 trillion (over US$6.5 billion).

Market experts, including those at MB Securities Company, predict a positive trajectory for BSR and MCH post-listing, anticipating enhanced liquidity and alignment with the companies' achievements.

This inflow of new listings, including the highly anticipated IPOs of Vinpearl under Vingroup, Hoa Sen Group and Gia Lai Livestock JSC under Hoang Anh Gia Lai, signifies a dynamic shift in Vietnam's stock market.

Noteworthy retail giants such as Mobile World Investment Corporation and FPT Retail are also determined to bring their subsidiaries, Bach Hoa Xanh and Long Chau, to the public arena in the near future.

BW Industrial, a prominent industrial real estate developer, is also strategising an IPO in Vietnam.

Against the backdrop of these developments, HoSE reported a decrease in listed securities, with 393 stock codes and 16 ETF certificates by the end of 2024.

This trend mirrors the situation at HNX, where the number of newly listed stocks has gradually declined since 2020.

The market welcomed only a handful of new entrants in 2024, including DSE from DNSE Securities Company and AIG from AIG Asia Ingredients Corporation upon its UPCoM debut at year-end.

However, the pace of state-owned enterprise equitisation has been sluggish, with delays in the listing plans of several companies despite State Capital Investment Corporation's (SCIC) target to divest from 58 enterprises.

The stagnation in listings underscores the challenges posed by a lack of long-term investors and limited new investment opportunities in the market.

In 2025, the introduction of new players to the stock exchange is poised to rekindle investor interest and stir market dynamics.

Analysts anticipate that these strategic moves by major corporations will not only diversify investment opportunities, but also foster sustainable market growth, setting the stage for an exciting year in the Vietnamese financial market.