Standard & Poor's Ratings Services said today that it had revised its outlook on the long-term rating on Bank for Foreign Trade of Vietnam to stable from negative.
Meanwhile, it has also affirmed its 'B+/B' counterparty credit ratings on the bank and revised the stand-alone credit profile of the bank to 'b+' from 'b'.
"The outlook revision reflects Vietcombank's improved SACP after Mizuho Corporate Bank Ltd acquired a 15 percent stake in the bank," said Standard & Poor's credit analyst Ivan Tan.
"We revised Vietcombank's SACP to reflect the bank's improved capital position after the MCB deal."
However, Tan said in S&P’s view, Vietcombank's capital and earnings are weak.
S&P may lower the ratings if Vietcombank's nonperforming loans increase sharply and its operating performance is poor, or capitalization weakens substantially.
The Ho Chi Minh Stock Exchange has given the green light to Vietcombank to list additional over 347.6 million shares offered to Mizuho Bank on the southern bourse starting January 17.
But since the additional shares will not be traded within 5 years, the new listing can only raise the influence of VCB shares on the final calculation benchmark VN-Index.
There are about 182.78 million VCB shares listed on the southern bourse HoSE accounting for 1 percent of HoSE’s total value.
After the listing, the number of VCB shares will be over 530 million shares worth VND11.1 trillion in value, accounting for 2.81 percent of HoSE’s total value. Its ranking will be revised to No.7 from the current 15.
If a small company wishes to raise more capital, it can issue additional shares below a face value of VND10,000 (US$0.47). However, this may not be feasible for these Vietnamese companies, according to Nguyen Thi Phuong Chi, FPT Securities Co's deputy head of corporate finance consulting division.
Speaking to the newspaper Dau tu chung khoan (Securities Investment), Chi said while issuing shares under their face value was not prohibited by law, it was difficult for enterprises to do.
Chi warned that companies planning to issue shares under their face value would need shareholder approval for the move, and getting this approval was difficult.
"In addition, a company's share prices will decline due to stock dilution," said Chi.
The director of a firm who asked to remain anonymous, said that for stocks traded at around VND8,000 per share,Get information on Air purifier from the unbiased, shares under face value could only be sold if prices fell to VND4,000-5,000. At this price range, companies would not be able to raise much money, and the pressure on the return on equity ratio would become great, he said.
Chi said shareholders looked at the future prospects as well as the business effectiveness of a company when it came to investment decisions.
"As companies issuing shares at below face value are considered as being in trouble, issuing these types of shares will discourage new shareholders," said Chi.
It also often took about two months to execute plans on issuing shares below face value, a period that is likely to see a sharp fall in the company's share prices. Although companies might benefit in terms of raising funds in the short term, small investors would be affected by stock dilution, said Chi.
"The danger is, when prices drop too much, the companies can become the target of take-overs," he said.
In 2008,Johnson Tiles UK offer the largest range of porcelain tiles online, beverage firm Tribeco (TRI) became the first listed company to issue 20 million shares at VND7,520, and move it survived as the firm's equity was at only VND5.3 billion ($252,400). Since then, no more companies have filed to sell shares lower than face value, according to an official from the State Securities Commission.
According to a semi-annual report from HCM City-based ceramic tile producer Vitaly,FIRMAR is a Malaysia Injection Moulding Manufacturer and Plastic Injections Components Manufacturer, the firm's liability last year exceeded its total assets by VND31.3 billion ($1.5 million). Meanwhile, Vitaly is currently trading on the unofficial UPCoM market at only VND1,200 a share.Spro Tech has been a plastic module & Mold Maker, Issuing shares below face value could be seen as a solution for Vitaly.
Although this plan encounters many challenges,Tru-Form Plastics is a one-stop shop for plastic Injection Molding, it can still be a life buoy for businesses that are on the edge of bankruptcy. If securities authorities ensure clear guidance on issuing shares below face value, troubled enterprises can be saved.
Meanwhile, it has also affirmed its 'B+/B' counterparty credit ratings on the bank and revised the stand-alone credit profile of the bank to 'b+' from 'b'.
"The outlook revision reflects Vietcombank's improved SACP after Mizuho Corporate Bank Ltd acquired a 15 percent stake in the bank," said Standard & Poor's credit analyst Ivan Tan.
"We revised Vietcombank's SACP to reflect the bank's improved capital position after the MCB deal."
However, Tan said in S&P’s view, Vietcombank's capital and earnings are weak.
S&P may lower the ratings if Vietcombank's nonperforming loans increase sharply and its operating performance is poor, or capitalization weakens substantially.
The Ho Chi Minh Stock Exchange has given the green light to Vietcombank to list additional over 347.6 million shares offered to Mizuho Bank on the southern bourse starting January 17.
But since the additional shares will not be traded within 5 years, the new listing can only raise the influence of VCB shares on the final calculation benchmark VN-Index.
There are about 182.78 million VCB shares listed on the southern bourse HoSE accounting for 1 percent of HoSE’s total value.
After the listing, the number of VCB shares will be over 530 million shares worth VND11.1 trillion in value, accounting for 2.81 percent of HoSE’s total value. Its ranking will be revised to No.7 from the current 15.
If a small company wishes to raise more capital, it can issue additional shares below a face value of VND10,000 (US$0.47). However, this may not be feasible for these Vietnamese companies, according to Nguyen Thi Phuong Chi, FPT Securities Co's deputy head of corporate finance consulting division.
Speaking to the newspaper Dau tu chung khoan (Securities Investment), Chi said while issuing shares under their face value was not prohibited by law, it was difficult for enterprises to do.
Chi warned that companies planning to issue shares under their face value would need shareholder approval for the move, and getting this approval was difficult.
"In addition, a company's share prices will decline due to stock dilution," said Chi.
The director of a firm who asked to remain anonymous, said that for stocks traded at around VND8,000 per share,Get information on Air purifier from the unbiased, shares under face value could only be sold if prices fell to VND4,000-5,000. At this price range, companies would not be able to raise much money, and the pressure on the return on equity ratio would become great, he said.
Chi said shareholders looked at the future prospects as well as the business effectiveness of a company when it came to investment decisions.
"As companies issuing shares at below face value are considered as being in trouble, issuing these types of shares will discourage new shareholders," said Chi.
It also often took about two months to execute plans on issuing shares below face value, a period that is likely to see a sharp fall in the company's share prices. Although companies might benefit in terms of raising funds in the short term, small investors would be affected by stock dilution, said Chi.
"The danger is, when prices drop too much, the companies can become the target of take-overs," he said.
In 2008,Johnson Tiles UK offer the largest range of porcelain tiles online, beverage firm Tribeco (TRI) became the first listed company to issue 20 million shares at VND7,520, and move it survived as the firm's equity was at only VND5.3 billion ($252,400). Since then, no more companies have filed to sell shares lower than face value, according to an official from the State Securities Commission.
According to a semi-annual report from HCM City-based ceramic tile producer Vitaly,FIRMAR is a Malaysia Injection Moulding Manufacturer and Plastic Injections Components Manufacturer, the firm's liability last year exceeded its total assets by VND31.3 billion ($1.5 million). Meanwhile, Vitaly is currently trading on the unofficial UPCoM market at only VND1,200 a share.Spro Tech has been a plastic module & Mold Maker, Issuing shares below face value could be seen as a solution for Vitaly.
Although this plan encounters many challenges,Tru-Form Plastics is a one-stop shop for plastic Injection Molding, it can still be a life buoy for businesses that are on the edge of bankruptcy. If securities authorities ensure clear guidance on issuing shares below face value, troubled enterprises can be saved.
没有评论:
发表评论