Vietnamese businesses in need of more capital should consider listing on the American stock exchange, a US consultant said at a seminar in HCM City yesterday.
“The US market is a giant one and companies around the world list on stock exchanges there,” said Henry D Fahman, chairman of Providential Holdings Inc, a financial consulting company based in the US.
Nearly 100 business people attended the seminar organised by the Viet Nam Chamber of Commerce and Industry (VCCI).
“Why should you have to wait for foreign investors when you can raise funds directly in foreign markets,” he said.
He said companies in Singapore, Hong Kong and London continue to list on the US stock exchange because of the financial potential.
About 2,800 companies are currently listed on the New York Stock Exchange (NYSE), with 450 of them non-American. Daily trade value stands at US$54 billion.
Fahman said Vietnamese businesses should seriously consider listing as a way of raising capital, particularly as the country integrates with the global economy.
“Once listed in the US, Vietnamese companies can tap the American market to sell products and attract capital for business development.”
Another advantage of the US market is its vast pool of experienced investors, he said, adding that the Vietnamese market is still in its infancy and shareholders are less sophisticated.
Listing on the New York Stock Exchange (NYSE) requires a company to have at least 2,000 shareholders and a previous year’s revenue of $75 million.
Among other requirements are a $10 million pre-tax profit of $10 million and market capital of $100 million.
Other stock exchanges in the US include the American Stock Exchange (AMEX), the over-the-counter (OTC) Bulletin Board, and the NASDAQ (National Association of Securities Dealers).
Several Vietnamese joint-stock companies have shown interest in listing on Singapore’s stock market, which Vietnam Dairy Products Corp (Vinamilk) already has done.
However,Viet Nam has yet to pass any regulations on companies’ listing overseas.
“I hope Viet Nam will soon create such regulations, and it’s your responsibility to express your wishes to the State,” Fahman said. — VNS
https://m.vietnambreakingnews.com/2005/10/capital-starved-firms-told-to-list-on-us-exchange/
Securities Disclaimer
This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.
