Vinhomes Joint Stock Company (VHM) announced that it will buy 370 million treasury shares, equivalent to 8.5% of outstanding shares. Transaction method is order matching or negotiation.

VHM said that the market price of VHM shares is lower than its real value, so the stock buyback is to ensure the interests of the Company and shareholders.

According to the closing price of the trading session on August 6, VHM stock price is 34,800 VND/share, 21% lower than the book value (according to the financial statements of the second quarter of 2024).

If temporarily calculated based on the closing price on August 6, it is estimated that Vinhomes will have to spend more than 12,876 billion VND to buy the above treasury shares.

The purchase of 370 million treasury shares will reduce VHM's charter capital by VND3,700 billion. The reduction in the number of outstanding shares will help increase the earnings per share (EPS).

On the stock market, on the morning of August 7, before the above information, VHM stock price increased to the ceiling price of 37,200 VND/share, the trading volume suddenly increased to nearly 29 million shares, nearly 3 times higher than the previous session. This is also the session with the highest trading volume in the past 3 months (session 9/05 more than 34 million shares).

At the same time, another Vingroup stock, VRE, is also near the ceiling with a matched volume of 16.5 million units, currently priced at VND18,000/share, up nearly 6%, much more positive than the 3 consecutive sessions in early August when it closed in red.

With VIC, similarly, there was a positive stock price movement, increasing by 2.66%, with a matched volume of nearly 4 million units.