Vietnam IPO Surge Slows as Market Sells Off, Weighing on Newcomer VPBank Securities

Shares of VPBank Securities JSC fell on its trading debut on Thursday amid a broader market decline. The stock dropped 6.5% to 31,700 dong per share at 10:11 a.m. on the Ho Chi Minh City Stock Exchange. This marked the company's listing of about 1.875 billion shares at an initial price of 33,900 dong each.

The decline was part of a broader pullback in the Vietnamese stock market, with the VN Index dropping 1.2%. Major conglomerate names like Vingroup, Vinhomes, and Vinpearl contributed significantly to the fall, with losses of at least 1.6% each. The market's weakness weighed on investor sentiment across the board.

The IPO raised about $482 million and was oversubscribed, receiving bids for 390.5 million shares versus 375 million offered. The company used a pro rata allocation method, giving each investor 96.036% of their requested shares. This set a market capitalization of around 59.4 trillion dong, or $2.25 billion according to market analysis.

A Broader IPO Momentum in Vietnam

Vietnam has seen a surge in IPO activity this year, fueled by a 34% rise in the benchmark VN Index. This has increased investor appetite and encouraged companies to seek equity financing for growth and regulatory compliance. The buoyant market has created a favorable environment for new listings.

Techcom Securities JSC began trading in October after raising $410 million from its September IPO. VPS Securities, another major player, will list its shares on December 16 after raising $460 million. Analysts say the trend among securities firms is driven by the need to raise capital to meet regulatory requirements and expand operations.

The IPO wave is not limited to the securities sector. Ride-hailing firm Be Group plans to go public as early as 2028, according to market reports, aiming to expand its logistics, grocery delivery, and financial services. It recently raised $30 million from VPBank Securities JSC and has discussions underway with investors from Japan, South Korea, and other regions.

Market Conditions and Investor Sentiment

The broader market has lost some momentum in recent weeks. The VN Index, once among Southeast Asia's top-performing benchmarks, has slipped 1.71% over the past week. Foreign investors have remained net sellers, despite regulatory reforms and the country's upgrade to emerging market status by FTSE Russell.

On Thursday morning, the index was slightly lower as investors digested mixed signals from regional and global markets. The drop in VPBank Securities was also seen as a reflection of broader caution rather than company-specific concerns.

Analysts note that while the IPO market is robust, companies still face challenges in sustaining investor enthusiasm. The success of these new listings depends on macroeconomic conditions, liquidity, and the performance of the parent companies. For now, the market remains cautiously optimistic about the long-term growth of Vietnam's capital markets.