Upgrading will boost IPO activities in the stock market

The Government has officially approved the Project to upgrade the Vietnamese stock market in the context of the capital market, financial market and the economy entering the era of national development. The Project has been thoroughly grasped and implemented in accordance with the viewpoints, policies and guidelines of the Party, State, National Assembly and Government on international economic integration, restructuring the economy and financial market, developing the capital market and stock market.

With increasingly perfect institutions, strong growth of the stock market along with a positive macro economy, many large-scale and quality companies have announced plans for IPOs associated with listing in the coming time, helping to diversify goods as well as increase the sustainability and quality of the market. According to the latest estimates, Vietnam's stock market can welcome a wave of IPOs with a scale of up to 47 billion USD in the next 3 years. Obviously, the prospect of upgrading has and will contribute significantly to promoting IPO activities in the coming time. So what will the more vibrant IPO activities in the stock market mean for the market, businesses, investors in particular and for the economy in general?

Discussing this issue in the Talk show The Finance Street on VTV8 , Mr. Trinh Thanh Can, General Director of Kafi Securities Joint Stock Company, assessed that if upgraded, equitization and IPO activities will be more vibrant, thereby helping goods on the listed market become more diverse and rich in the number of enterprises, as well as bringing the proportion of industries on the stock market closer to the actual structure of the economy.

Editor Khanh Ly: In the context of a growing economy, improved business results of enterprises, and the prospect of upgrading the stock market is very close, how do you evaluate the stock market in the current context?

Mr. Trinh Thanh Can, General Director of Kafi Securities Joint Stock Company: It can be seen that up to now, VN Index has conquered many important milestones. Current conditions are very ideal for the prospect of the stock market from now until the end of 2025. Positive macro factors help Vietnam to be a bright spot in the region, with GDP growth in the first 6 months reaching 7.52%, the highest level in the past 5 years, while other countries are still struggling with the story of recovery after the crisis. Abundant capital flows bring the average liquidity of the market per session to nearly 35,000 billion VND, the highest ever. Although there are pressures for adjustment in the short and medium term, it is an opportunity to restructure cash flow.

I believe that the growth potential of the general market for the end of the year is still very large with expectations from profit growth of listed enterprises and increased valuation levels in the process of upgrading the market.

Editor Khanh Ly: We are getting closer to being upgraded by FTSE, so it is expected that foreign capital will return along with new capital will enter the Vietnamese stock market. So if foreign capital returns along with new capital, what do you think will be the market's ability to absorb this capital?

Mr. Trinh Thanh Can, General Director of Kafi Securities Joint Stock Company: As we have seen, in the past 10 years, the size of the stock market has grown very strongly. The number of listed companies has doubled, the capitalization has increased 7 times, and the average daily liquidity has also increased 10 times. The quality of listed companies has also improved significantly. New standards on information disclosure and financial reporting help increase transparency and help investors have better access to companies.

Currently, Vietnam has also fully met the criteria of the FTSE upgrading organization. If the Vietnamese stock market is upgraded in the upcoming review periods, FTSE reference index funds are expected to allocate about 3.4 billion USD to the Vietnamese market. If we subtract the capital withdrawal from marginal index funds, the net cash flow into the Vietnamese market is estimated at about 1.7 billion USD. With the current size of the market, it is completely capable of absorbing the new foreign capital flowing into Vietnam.

When large investment funds enter Vietnam, they will initially prioritize choosing Bluechip stocks. However, our country's stock market has a large difference in capitalization between industries. The banking and real estate industries account for nearly 50% of market capitalization, most Bluechip stocks are concentrated in these two groups, leading to the possibility that the index stock baskets will have certain difficulties in capital allocation.

Upgrading will boost IPO activities on the stock market - Photo 1.

Mr. Trinh Thanh Can talks with Editor Khanh Ly in the Financial Street Talk show.

Editor Khanh Ly: It must be admitted that the initial public offering (IPO) activity has been quiet for many years, causing the products on the market to not have much diversity. Can you explain why?

Mr. Trinh Thanh Can, General Director of Kafi Securities Joint Stock Company: In previous years, there were many unfavorable events that caused certain obstacles to cash flow into the stock market, typically the Covid 19 pandemic, the corporate bond event or incidents related to stock price manipulation. The valuation level at that time in the market was relatively low, leading to businesses that, if they issued to the public, would have little chance of success or not achieve their desired plan. The equitization of state-owned enterprises, after a period of excitement, has also become quieter, making investors not too interested in stories about IPOs.

Editor Khanh Ly: Currently, the economy is still in a good growth trend with economic support policies, the stock market is also benefiting. However, after a period of strong growth, how will the stock market develop in the coming time according to your forecast?

Mr. Trinh Thanh Can, General Director of Kafi Securities Joint Stock Company: The stock market has been on a very long upward trend since the beginning of April. However, profit-taking pressure is currently increasing, combined with cautious sentiment before the FTSE review information. A short-term correction is healthy and necessary.

In the long term, the stock market still has a lot of room for growth. There are three major factors supporting the stock market. First, the current macro context is very favorable, expected to strongly support the business results of enterprises across the market, strengthening the fundamentals of the Vietnamese stock market. The Fed has just lowered the operating interest rate at the September 17 meeting, as well as giving its opinion on the interest rate roadmap in the coming time. The Fed's interest rate cut will help bring foreign money back to developing financial markets, as well as relieve pressure on exchange rates, including Vietnam.

Finally, FTSE is likely to upgrade Vietnam’s stock market to emerging market status in its September review and announce it in early October. If upgraded, the valuation level of Vietnam’s stock market will be raised to be on par with other emerging markets in the region with strong capital flows from passive funds and index funds.

Editor Khanh Ly: In that context, how will IPO activities on the stock market take place, in your opinion?

Mr. Trinh Thanh Can, General Director of Kafi Securities Joint Stock Company: I expect IPO activities to be more active from the second half of 2025. A series of big-name enterprises have announced IPO plans this year and next year. Currently, the macro context is more positive, cash flow into the stock market has skyrocketed, promoting the need to find new investment opportunities. If in the first half of 2025 we have relatively few IPO deals associated with listing, in the second half of the year, we can witness "blockbuster" deals with a series of big names such as TCBS, VPBS, VPS or in the F&B industry there are Highland Coffee or Masan Consumer. In agriculture, Hoa Phat Agriculture has submitted IPO documents, in the retail industry there is Bach Hoa Xanh, in technology there is Viettel IDC, even Kafi has specific plans to IPO in the fourth or first quarter of 2026.

High-quality deals promise to bring many investment opportunities to the market. Along with the private enterprise group, the State Securities Commission is also promoting the equitization of state-owned corporations. This is also in line with the government 's orientation from the beginning of the year, which is to promote the private economy, creating more opportunities for private capital to participate in business. The vibrant equitization and IPO activities will help goods on the market become more diverse, rich in the number of enterprises as well as bring the proportion of industries on the stock market closer to the actual structure of the economy.

Editor Khanh Ly: In addition, as a member of the market, how will your company continue to contribute to the market?

Mr. Trinh Thanh Can, General Director of Kafi Securities Joint Stock Company: As a member of the stock market, Kafi is still actively upgrading and improving to better serve investors and businesses. We are always upgrading the trading platform, providing the most optimal trading experience, flexible margin, helping investors maximize profits during the investment process. In addition, we are also actively implementing solutions to support investors in making decisions, including in-depth analysis, as well as organizing meetings, seminars, livestreams to provide knowledge to investors, accompanying them on their trading journey.

In the efforts of the regulatory agency to upgrade the Vietnamese stock market, we are also actively participating. Regarding Non-Prefunding (NPF)/DvP, we coordinate with custodian banks - clearing to meet international payment standards. Support foreign investors with quick on-boarding, bilingual records, transparent reports, encourage businesses to standardize information disclosure, IR schedules, and improve governance quality. At the same time, with new operations (T+0, covered short selling, SBL, structured products... regulated by the regulatory agency, we will implement them in accordance with the roadmap and regulations of the regulatory agency, ensuring system safety and protecting investors. And in the context of a very vibrant IPO market, we also have a very detailed preparation plan to IPO the company in the fourth or first quarter of 2026.

Editor Khanh Ly: Thank you for the above information!

Source: https://vtv.vn/nang-hang-se-thuc-day-hoat-dong-ipo-tren-thi-truong-chung-khoan-100250923105909876.htm