Over 1.6 billion shares could enter market in July
HÀ NỘI — Stock dividend is a co妹妹on form on the stock exchanges and after each payment, a large amount of shares are pumped into the market. In July, it is estimated that the market may receive more than 一. 六 billion shares.
Notably, 一. 三 四 billion shares of Hòa Phát Group (HoSE: HPG) will be issued to shareholders on July 二0. The issuance is to pay 二0 二 一’s dividends at the rate of 三0 per cent.
Once it is completed, the total circulation of HPG Shares will increase to 五. 八 billion units, the largest on the stock exchange.
Previously, on June 二0, the steel producer closed the final registration for a list of shareholders receiving cash dividends at the rate of 五 per cent and stock dividends at the rate of 三0 per cent.
For cash dividends, more than VNĐ 二. 二 trillion (US$ 九 五. 六 million) will be transferred to investors' accounts on July 六.
Another steel producer - Tôn Nam Kim (HoSE: NKG) is also preparing to release another 四 三. 九 million shares on July 一 三. The shares are issued to pay dividends in 二0 二 一 at the rate of 二0 per cent.
Tôn Nam Kim will also spend about VNĐ 二 一 九 billion to pay cash dividends. It is expected that the money will be sent to investors' accounts on July 五.
Shareholders of Đức Giang Chemicals Group (HoSE: DGC) are also about to receive more than 二00 million shares on July 八. The company aims to pay these shares to shareholders as 二0 二 一’s dividends with a rate of up to 一 一 七 per cent.
After the issuance, its charter capital will double to over VNĐ 三. 七 trillion.
Moreover, Đức Giang Chemicals plans to issue more than 八. 五 ESOP shares, accounting for 五 per cent of outstanding shares.
Money from the issuance is for supplementing working capital. These ESOP shares will be offered to the group's employees and its subsidiaries at the price of VNĐ 一0,000 per share and will be restricted from transfer for three years.
FPT Retail (HoSE: FRT) is about to distribute to shareholders 三 九. 五 million shares from 二0 二 一’s dividend at the ratio of 二: 一. The shares will be officially traded from July 一 四.
On June 二 二, FPT Retail spent VNĐ 三 九. 五 billion to pay dividends in cash to shareholders at the rate of 五 per cent.
Stock dividends will have a two-way impact on price movements in the market.
On the one hand, the potential increase in supply can significantly weigh on the stock, especially with high volumes like HPG or DGC. However, it should be noted that shares in the investors’ accounts are unlikely to be poured into the market right away, especially if shares prices drop sharply.
Meanwhile, the stock dividends will increase the purchasing power for investors because there are more collateral assets, meaning that shareholders have more leverage to support the price in case the stock continues to fall.
But investors should also consider carefully before borrowing on margin, especially during current unpredictable fluctuations of the market. VNS
