The Great Unloading: Why Are So Many CEOs Dumping Their Stocks?

Last week, the VN-Index fell 2.71 points to 1,329.54. Trading liquidity slightly decreased by 4% compared to the previous week. In contrast, the HNX-Index rose 5.39 points to 228.33.

On the HoSE, foreign investors bought a net of over 25 million units but still sold a net of more than VND 2,093 billion in value. On the HNX, they bought a net of 8.8 million units, with a net buy value of over VND 148 billion.

In the Upcom market, foreign investors sold a net of 6.1 million units, with a net sell value of over VND 115 billion. Thus, during the trading week from June 2nd to 6th, foreign investors bought a net of 27.7 million units on the overall market but still sold a net of more than VND 2,060 billion in value.

A rush to sell

Mr. Le Van Nam, CEO of Hoa Binh Construction Group Joint Stock Company (stock code: HBC), has just completed selling 500,000 shares and continues to offer to sell all remaining 123,700 shares. If the transaction is successful, Mr. Nam will reduce his ownership in HBC to 0% of the charter capital. The transaction is expected to take place from June 5th to July 4th.

On the opposite side, Mr. Le Viet Hieu, Vice Chairman of the Board of Directors and Deputy General Director of HBC, registered to buy 500,000 HBC shares to increase his ownership to 1.71 million shares. The transaction is expected to take place from May 22nd to June 20th.

Mr. Pham Thu, Chairman of the Board of Directors of Saigon Real Estate Corporation (Saigonres, stock code: SGR), registered to sell 9.8 million shares to reduce ownership from 27,839,257 shares (equivalent to 39.8% of charter capital) to 18,039,257 shares (equivalent to 25.8% of charter capital). The transaction is expected to take place from June 9th to July 7th through matched orders and order matching transactions on the floor.

Notably, on May 7th, Mr. Pham Thu bought 9,875,000 SGR shares in the company’s private offering at a price of VND 40,000/share to increase his ownership to 39.8% of charter capital. The privately issued shares are restricted from transfer within 1 year.

Thus, after more than 1 month of buying 9,875,000 shares in the private offering at a price of VND 40,000/share – these shares are restricted from transfer for 1 year, Mr. Pham Thu wanted to sell 9.8 million shares – these are freely transferable shares that he previously held before the private offering. Currently, SGR is trading around VND 30,350/share.

Mr. Le Toan, a member of the Board of Directors of Ho Chi Minh City Technical Infrastructure Investment Joint Stock Company (stock code: CII), has just sold all 500,000 CII shares to reduce his ownership to 0% of the charter capital. The purpose of the transaction is to meet personal financial needs.

Phuoc An Port Petroleum Investment and Exploitation Joint Stock Company (stock code: PAP) received a resignation request from Mr. Hoang Sy Quyet, a member of the Board of Directors, according to his personal wishes.

Mr. Quyet is 44 years old this year and has been a member of the Board of Directors of Phuoc An Port since 2019. From 2019 to October 2022, Mr. Quyet held the position of General Director of Phuoc An Port.

Mr. Quyet was dismissed and gave up his position as General Director to Mr. Truong Hoang Hai when Phuoc An Port changed its major shareholders after consecutive private issuances, diluting the State’s ownership ratio.

Huge dividends

Vietnam Exhibition Fair Center Joint Stock Company (stock code: VEF) has just approved the plan to pay dividends to shareholders. Specifically, VEF plans to pay huge dividends of up to 435% in cash, including a dividend rate of 135% from after-tax profit not yet distributed up to December 31, 2024, and an advance dividend of 300% from the after-tax profit of the first quarter of 2025. The expected record date to close the list of shareholders receiving dividends is June 13th, and the payment date is July 4th.

Currently, VEF has a charter capital of more than VND 1,666 billion, in which Vingroup Joint Stock Company (stock code: VIC) is the parent company owning 83.32% of the capital. Thus, Vingroup will receive nearly VND 604 billion in dividends from VEF.

In the first quarter of this year, VEF recorded after-tax profit of more than VND 14,873 billion, up 16,135% over the same period last year, which recorded more than VND 91 billion.

Saigon VRG Investment Joint Stock Company (stock code: SIP) plans to issue bonus shares to pay dividends for 2024 at a rate of 15%, equivalent to 100 shares, shareholders will receive 15 new shares. Thus, SIP expects to issue an additional 31.58 million shares. The expected issuance time is in the second and third quarters of 2025, and the expected closing date is in July 2025.

Transport Infrastructure Investment and Construction Consulting Joint Stock Company (stock code: TVG) has just announced the record date to receive cash dividends for the years 2018, 2020, and 2022, which is June 20th. The total dividend rate is 24%, meaning that for every 1 share held, shareholders will receive VND 2,400. In which, the dividend rate for 2018 is 10%, 2020 is 7%, and 2022 is 7%. The expected payment date is June 30th, with a total amount of about VND 4.9 billion.

Previously, Mr. Nguyen Doan Binh, Vice Chairman of the Board of Directors of TVG, registered to buy 350,000 shares, equivalent to 17.2% of the company’s charter capital. It is estimated that Mr. Binh will spend about VND 5.8 billion on this deal. If the purchase is completed before the closing date, he can receive about VND 840 million in dividends.

Mr. Binh’s move to accumulate shares goes against the trend of most other leaders and major shareholders at TVG. Recently, a series of senior executives have consecutively registered or completed share sales.

In May, Chief Accountant Nguyen Thuy Hao registered to sell all of her 9.35% stake in TVG. General Director Dang Tuan Cuong has sold more than 10% of his capital as of May 9th and is continuing to sell the remaining shares this June. Major shareholder Pham Viet Hung also divested his entire nearly 10% stake on the same day as Mr. Cuong. Another Vice Chairman of the Board of Directors, Mr. Do Van Hat, registered to sell 24.3% of his capital at the end of May. Major shareholder Do Thi Minh Hai sold her entire nearly 25% stake at the end of April.