Sky high stock turns heads

March 10, 2011 | 16:50

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A new stock is shocking the market with a historically high offering price of VND2 million ($96.6) per share.

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That offer is 20 times higher than the stock’s par value of VND100,000, while the most expensive stock currently, Vincom Corp (VIC), has a market price just 12.5 times higher than the par value.

This price is offered by Vietnam Paper Corp. (Vinapaco) which is auctioning its 18 per cent stake in Saigon Garment Match Joint Stock Company to the public on this March 28. Vinapaco is now the largest shareholder of Saigon Garment Match with 18 per cent of stake.

According to Vinapaco, Saigon Garment Match has great advantages such as land and a good business. The extraordinary price represents big expect of Vinapaco on Saigon Garment Match’s value.

Saigon Garment Match’s current charter capital is of VND16 billion ($773,000), divided into 160,000 shares. The company specialises in match and garment production and doing some other businesses in forestry and aquaculture sectors. The most worthy asset of the company is the land covering 21,000 square metres based in Ho Chi Minh City downtown.

Le Thai Hung, finance director for Vietnam Industrial and Commercial Securities (VICS) – advisor of the auction, said VICS had advised a much lower prices for the shares even when the stock market had not tumbled as it did now. Vinapaco, however, decided to fix the price at VND2 million.

By Thanh Doan

vir.com.vn

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