Vietnam's IPO Market Awaits 'Blockbuster' Deals Amidst Subdued Performance

Vietnam's Initial Public Offering (IPO) market is currently experiencing a lull, failing to generate the significant investor interest and post-listing returns seen in the 2016-2018 period. While some recent IPOs have seen modest short-term gains, they fall far short of the hundreds of percent surges recorded by companies like Sabeco, Vietjet Air, and Airports Corporation of Vietnam (ACV) in the past.

During the 2016-2018 boom, the Vietnamese stock market witnessed its most vibrant IPO wave, featuring major private and state-owned enterprises. Many of these stocks experienced substantial price increases within their first year of trading. For instance, Vietjet Air (VJC) saw a 167% rise, Sabeco (SAB) 151.5%, ACV 137.37%, and VEA 131.74% after approximately 250 trading sessions.

“

The real blockbusters have yet to appear. Individual investors are mainly engaged in short-term trading when participating in recent IPOs, while long-term holders find it difficult to achieve high returns like in the previous cycle.

In contrast, the current third wave of IPOs appears fragmented. While F88 has seen a notable increase of about 108.6% and Dragon Capital Vietnam (DCV) 55.5%, many other recent listings are trading below their offering prices, with some, like Hoa Phat Agriculture Development (HPA), down nearly 20%.

Nguyen The Minh, Director of Investment Banking at An Binh Securities (ABS), believes the IPO wave has begun but has not yet reached its peak. He attributes the current market conditions to three main factors: a lack of diversity in IPO offerings, primarily concentrated in the finance and securities sectors; excessively high valuations set by some companies; and the absence of a landmark IPO to create a ripple effect and attract broader investor attention. Minh noted that in the past, capital even flowed out of the secondary market to pursue IPO opportunities. He predicts a more positive IPO market from late 2026, contingent on falling interest rates and easing inflation, with 2027 potentially marking a new peak.

“

The IPO wave has actually started but has not yet entered the explosive phase.