Unleashing the IPO Boom: A Resurgence After Years of Silence

Vietnam’s stock market is experiencing a rare period of vibrancy as the VN-Index consistently reaches new milestones. Ample liquidity, coupled with the anticipated market upgrade, has created a favorable environment for numerous companies to accelerate their capital-raising plans.

“Queuing Up” for Public Offerings

Recent data reveals a flurry of initial public offerings (IPOs) and capital increase plans from major companies, totaling billions of dollars. Notably, securities firms are seizing the opportunity to bolster their capital, strengthen operations, and expand proprietary trading, margin lending, and underwriting services.

Techcom Securities (TCBS), a subsidiary of Techcombank, has been a prominent name in recent discussions. On September 18th, the State Securities Commission announced that TCBS’s IPO was oversubscribed, with demand 2.5 times the offered amount. The IPO attracted a record number of investors, including 78 institutional investors. TCBS successfully issued 231.15 million shares, increasing its charter capital to over VND 23,113 billion and its equity to more than VND 41,000 billion.

TCBS’s appeal stems not only from its strong fundamentals but also from its planned stock listing in October, which has piqued investor interest. This has elevated the company’s expected valuation to over USD 4 billion, a significant figure for the stock market.

VPBank Securities (VPBankS), a subsidiary of Vietnam Prosperity Bank, has also announced its IPO and listing plans on HoSE or UPCoM, attracting significant investor attention. VPBankS intends to issue up to 25% of its outstanding shares, or 375 million units, to domestic and foreign investors. If fully subscribed, the company’s charter capital will increase from VND 15,000 billion to VND 18,750 billion, making it one of the largest in the industry. Notably, the company’s shareholders have approved raising the foreign ownership cap to 100%, signaling readiness to attract foreign capital amid market upgrade expectations.

VPS Securities, the current market leader, is also surveying investor demand for its own IPO. According to the company, this step will help determine the optimal timing for its public offering.

“With foreign capital returning after years of net outflows and Vietnam’s market upgrade on the horizon, our IPO will not only add a ‘billion-dollar’ option but also create a strong psychological impact, reinforcing investor confidence in the long-term prospects of capital markets alongside bank credit,” said a VPS Securities representative.

In other sectors, Hoa Phat Agricultural Development Company (HPA), a subsidiary of Hoa Phat Group, has submitted its IPO filing to the State Securities Commission and plans to list on HoSE in December 2025 under the ticker HPA. The company will offer up to 30 million shares, or 11.7% of its charter capital, at a price no lower than its book value of VND 11,887 per share. The raised capital will be used to invest in farms, feed mills, and working capital.

HPA leads the Northern region in egg production with 1 million eggs per day and operates a closed-loop pig farming system with a capacity of over 600,000 pigs annually. It ranks among the top 13 feed producers and leads in Australian beef market share. In 2024, Hoa Phat’s agricultural segment reported revenue of VND 7,081 billion, up 12%, and pre-tax profit of VND 1,038 billion, five times higher than the previous year.

Other major players planning IPOs and listings include Gelex Infrastructure, C.P. Vietnam, Highlands Coffee, Bach Hoa Xanh, and Dien May Xanh.

Attracting Foreign Investment

In its latest update, Dragon Capital notes that the IPO wave has resumed with positive signals, potentially catalyzing the market. Dragon Capital estimates that Vietnam’s stock market could see IPOs totaling USD 47 billion over the next three years.

According to Huynh Anh Tuan, CEO of Vikki Securities, stock markets are essential for companies to raise capital for business expansion. With the market in a positive phase, high liquidity, and rising stock prices, it’s natural for companies to accelerate IPOs and listings.

Tuan highlights that the government’s efforts to remove obstacles and stimulate market activity are aligned with the goal of upgrading the market. “New capital, investors, and quality stocks will attract domestic and foreign institutions, increasing market capitalization—a crucial step for upgrading and growth,” he emphasized.

At the recent “Stock Market Upgrade: New Heights, Big Opportunities” talk show organized by Lao Dong Newspaper, experts agreed that alongside the market upgrade, quality “merchandise” is vital. If upgraded, Vietnam could attract USD 5-10 billion in foreign capital in the first year, provided the market offers more attractive stocks.

Dr. Tran Thi Kim Oanh from the University of Finance and Marketing believes that the quality of listed companies is key to attracting investors. “The government should enhance corporate governance and mandate English financial reporting. Currently, only 30% of HoSE-listed companies fully report in English, limiting foreign investor participation,” she analyzed.

She added that greater transparency could increase the free float ratio for large companies like Vingroup (VIC), Vinhomes (VHM), Vinamilk (VNM), and Hoa Phat (HPG) beyond the current 30-40% average, boosting attractiveness and bringing the VN-Index’s P/E ratio closer to 18, on par with ASEAN markets.

Nguyen The Minh, Director of Retail Research at Yuanta Securities Vietnam, noted that sustainable market development requires not only the upgrade and the Fed’s rate cut path but also sustained growth of listed companies and a long-term IPO wave.

“A significant step is Decree 245/2025/ND-CP, which amends Decree 155/2020/ND-CP, shortening IPO and listing timelines and enhancing investor protection. This will boost IPO listings, which have been lacking since 2022. This wave echoes 2017-2018, when large listings attracted foreign capital. Successful upcoming IPOs could reverse foreign investor sentiment,” he said.