Vietnam’s Vinhomes fulfils 67% of record buyback plan

Vinhomes, the housing development arm of conglomerate Vingroup, has purchased back 246.98 million shares, meeting 66.75% of the plan and accounting for 5.7% of the outstanding volume.

The company bought back 35.74 million shares on Thursday, the last day of its one-month buyback scheme. This was the largest volume during this period, according to exchange data.

Vinhomes shares, traded on the Ho Chi Minh Stock Exchange (HoSE) as VHM, closed flat at VND43,300 ($1.7) apiece on Thursday.

At this price, the company spent an estimated VND1.55 trillion ($60.87 million) on today’s purchase.

During Thursday, as many as 34.4 million VHM shares worth VND1.49 trillion ($58.75 million) were traded via order-matching transactions and 8.83 million shares valued at VND382.58 billion via put-through.

VHM was the most sold by foreign players on the HoSE today in terms of both volume and value, at 13.52 million units and VND585.61 billion ($23 million).

After 22 trading days, Vinhomes has disbursed an estimated VND11 trillion ($432.7 million) on the buyback, the highest figure on Vietnam’s stock market so far. VHM prices dropped 10.26% between October 23 and November 21, but are still 26% higher than the bottom seen in early August when the firm announced the buyback.

According to Vietnamese legislation, within 10 days after the buyback is finished, the treasury shares will be cancelled. Accordingly, Vinhomes’ charter capital will dwindle from the current VND43.54 trillion to VND41.07 trillion ($1.62 billion), still the highest among exchange-listed real estate companies.

The firm has a market cap of VND188.54 trillion ($7.442 billion), the fourth highest on the HoSE, after Vietcombank, BIDV, and FPT Corp.