Vinhomes buys back another 10 mln shares on Thursday as stock nosedives

Vinhomes JSC, the largest residential housing developer in Vietnam, bought another 9.95 million shares on Thursday, the second day of its mega buyback scheme, while its stock price continued going south.

As such, Vinhomes bought back a combined 29.06 million shares, 7.85% of the planned 370 million units after two days, exchange data showed.

At the close on Thursday, shares of Vinhomes, listed on the Ho Chi Minh Stock Exchange (HoSE) as VHM, sank 6.7% to VND43,850 ($1.73), following a drop of 2.6% a day earlier. After two days, VHM shares lost over 9% in value.

The stock of VHM was trading up 0.34% at VND44,000 ($1.73) a share at 11:11 a.m. on Friday, giving the company a market cap of VND191.59 billion ($7.54 billion), being the fourth-largest blue chip on the bourse, after Vietcombank (VCB), BIDV (BID), and FPT Corp (FPT).

Right before Vinhomes started its buyback plan, VHM shares rallied nearly 40% from its historic low in early August to the one-year high at VND48,250 ($1.9) apiece on Tuesday (October 22).

At the current market price, Vinhomes will need to spend around VND16.3 trillion ($641.6 million) to realize the plan.

If Vinhomes purchases all 370 million shares, its charter capital will be reduced from VND43,543 billion ($1.71 billion) to VND39,843 billion.