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|Halico's recent abysmal business performance made its stocks undesirable on the UpCOM|
On June 8, 20 million shares of Halico (ticker HNR) were officially listed on the UpCOM at the reference price of VND31,900. However, after the first transaction session, no Halico’s shares saw trading.
Even, the British multinational alcoholic beverages company Diageo Plc., the second largest shareholder of Halico with 45.5 per cent, gave Halico the cold shoulder.
This is no surprise because the firm’s listing occurred while it is flooded by massive losses.
The listing is part of Habeco’s plan to divest Halico due to its bleak business results, however, if the firm remains unmarketable for a long time, it may throw a wrench in Habeco’s plans.
Halico was Vietnam’s leading domestic branded spirit producer with the No.1 vodka brand Vodka Hanoi.
The firm reported soaring revenue in 2008-2011, with 2011 revenue reaching a record VND1.067 trillion ($46.86 million).
However, in the past years, business started going downhill.
Notably, in 2014, the company reported a revenue of VND397 billion ($17.4 million), with only VND30 billion ($1.3 million) of profit. In 2015, business deteriorated even further with the reported loss of VND21 billion ($922,426). As of the end of 2017, the firm reported a consolidated loss of VND255 billion ($11.2 million).