Asia Group with major shareholder changes ahead of listing

AIG Asia Materials Joint Stock Company (AIG Group) is considered a fundamental enterprise when trading shares on the UPCoM floor, because the unit is a partner of a series of large enterprises in Vietnam.

AIG Asia Materials Joint Stock Company (AIG Group) is considered a fundamental enterprise when trading shares on the UPCoM floor, because the unit is a partner of a series of large enterprises in Vietnam.

Although Asia Group had planned to list directly on HoSE, it finally decided to list on UPCoM. In October 2024, Asia Group was officially approved to trade on this exchange.

However, before the official trading time on UPCoM, many major shareholders sold out simultaneously, causing the ownership ratio of minority shareholders to increase from 14.66% to 24.11% of charter capital.

Notably, VFPHK Holdings Limited reduced its ownership from 10.02% to 4.02% of charter capital and is no longer a major shareholder; Penm IV Germany Gmbh & Co. Kg reduced its ownership from 9.44% to 3.44% of charter capital; Mr. Nguyen Bao Tung, General Director, reduced his ownership from 10.47% to 8.48% of charter capital. On the contrary, MGCA Foodco Pte. Ltd increased its ownership from 17% to 29% of charter capital.

The sale of shares by major shareholders raises many questions for investors regarding the commitment and attachment of major shareholders to the Company after officially trading on the UPCoM floor.

The past has witnessed many cases where before official trading on the stock exchange, many major shareholders sold their shares and then the stock price continuously plummeted.

For example, Yeah1 Group Joint Stock Company (code YEG) listed its shares on the HoSE in 2018. During this year, major shareholder DFJ VinaCapital Venture Investments Ltd sold more than 6.36 million YEG shares, reducing its ownership from 35.71% to 6.84% of charter capital.

In fact, after listing in 2018, Yeah1 was accused of tolerating “inappropriate” YouTube channels to make money and violating community standards, so in March 2019, YouTube officially stopped cooperating with Yeah1.

After that, Yeah1 suffered losses for two consecutive years (2019 recorded a loss of VND 385 billion, 2020 recorded a loss of VND 182 billion). Due to continuous losses and restructuring, YEG's stock price plummeted from a record price of VND 199,190 (June 28, 2018) to VND 9,500/share at the end of October 2024, down 95.2% in value.

It can be seen that when a company goes public and major shareholders sell most of their capital, it can be a negative sign for the stock price and outside shareholders.

Returning to Asia Group, this unit is somewhat different because the two major shareholders are VFPHK Holdings Limited and Penm IV Germany Gmbh & Co. The Kg sold is equal to the total amount of shares that the major shareholder MGCA Foodco Pte. Ltd bought.

In which, MGCA Foodco Pte. Ltd belongs to Marubeni Group, one of the largest multi-industry trading and investment groups in Japan.

In addition, Asia Group was established in 2001, converted to a joint stock company in 2017, with a charter capital of 18 billion VND and before trading on UPCoM, it had a charter capital of 1,706 billion VND. Notably, Asia Group is a secretive enterprise behind the supply of raw materials and food packaging for a series of big names such as Vinamilk, Masan, TH, Trung Nguyen...

From November 2018 to present, Asia Group has maintained a charter capital of VND 1,706 billion and owns 7 factories, including Asia Saigon Food Ingredients JSC Factory, Asia Coconut Processing JSC Factory, APIS JSC Factory, Asia Hoa Son JSC Factory, Asia Specialty Ingredients JSC Factory, Mekong Delta Gourmet JSC Factory and Vinh Hao Algae JSC Factory.

Mr. Nguyen Thao, CFO of Asia Group, said that the company is considering several options to increase capital, such as paying dividends in shares and issuing shares to existing shareholders to increase charter capital.

Thus, with a healthy financial situation of VND 2,566 billion in cash, accounting for 26.4% of total assets (as of June 30, 2024), and being a partner supplying raw materials and packaging for major food brands in Vietnam, Asia Group is still considered a new listed enterprise worth waiting for in 2024.

Source: https://baodautu.vn/asia-group-voi-bien-dong-co-dong-lon-truoc-them-niem-yet-d228880.html