The stock market is recording a wave of issuing shares to employees of companies (ESOP) with a series of enterprises announcing and planning to issue shares to officers, employees, and workers to increase charter capital, and at the same time as a reward to encourage and motivate the working spirit of employees.
For example, Minh Phu Seafood Corporation (Code: MPC) has just announced the issuance of more than 1 million shares to employees at a price of VND10,000/share. Masan Consumer Corporation (Code: MCH) announced a plan to issue ESOP to encourage employees and senior managers. Accordingly, the company plans to issue 7,174,310 shares at a price of VND10,000/share. The transfer restriction period is 1 year from the end date of the issuance.
Similarly, Gelex Group Corporation (Code: GEX) also announced that it will issue 8 million ESOP shares; Phu Nhuan Jewelry Joint Stock Company (Code: PNJ) plans to issue more than 3.34 million shares to employees,...
Besides businesses, in the financial group, banks are also not out of the game when a series of banks have announced that they will issue ESOP shares. Depending on each bank, there will be preferential prices, different numbers of ESOP shares and different purchase conditions such as Nam A Bank, Techcombank, VIB, ...
The essence of issuing ESOP shares is that businesses issue new shares to sell to insiders in the company. The common point of these ESOP shares is that they are all restricted from trading for 1-3 years from the date of issuance. However, not all company shares are well received, not all employees are willing to invest in buying ESOP even though the price is attractive,...
Therefore, a series of enterprises issued shares, leading to a "sluggish" situation. Typically, BAF Vietnam Agriculture Joint Stock Company (Code: BAF) only successfully sold nearly 2.49 million ESOP shares out of a total of more than 7.17 million shares offered for sale, equivalent to nearly 4.69 million "sluggish" shares, even though the selling price was half lower than the market price.
Similarly, International Dairy Products Joint Stock Company (Code: IDP) also had 725,528 ESOP shares (accounting for 61.5% of the total number of shares offered) unsold even though the price was only VND 10,000/share while the market price of IDP at that time was up to VND 253,000/share.
Analyzing the reasons for the "sluggish" situation of ESOP shares, Mr. Nguyen The Minh, Director of Research and Development of individual customers at Yuanta Securities Vietnam, shared that many businesses find it difficult to sell all ESOP shares due to the provisions that require holding the shares for 2-3 years before being able to sell them. Many people are worried that during this period, the stock price will decrease, even decrease to lower than the purchase price, so they do not dare to receive this "reward".
