The State Securities Commission issued a licence on Monday to list 3.2 million shares of Ry Ninh 2 Electric Co. on the Ho Chi Minh City Securities Trading Center.

The company, based in the Central Highlands coffee-growing province of Gia Lai, has yet to decide on the share's starting price, the executive said.

"We are expected to start trading in May," the executive of the 81-megwatt hydro power plant said.

Ry Ninh 2 is valued at VND96 billion ($6 million) following recent limited trade of its shares that priced the stock at around VND30,000 ($1.88), the executive said.

"The plant was privatised in 2002 but most shareholders did not want to sell as we have been paying a fair dividend of around 20 percent a year," he said.

The state owns 51 percent of Ry Ninh 2, an affiliate of state-run constructor Song Da Corp.. Located beneath the dam of the 720-MW Yaly Hydro Power Plant, Ry Ninh recycles water for its three generators.

Of the 35 stocks traded on Vietnam's exchange, which has a market capitalization of $2 billion, only Petroleum Mechanical Stock Co. and Saigon Fuel Co. are from the energy sector.

The Vietnam Index gained 2.85 percent on Tuesday, closing at a record 632.69 points, having more than doubled so far this year.

Another Vietnamese listed power plant is the largest stock on the over-the-counter market in the capital Hanoi. Song Hinh Hydro Power Plant has a market value of $254 million.

Apart from Ry Ninh 2's listing plan, around $62 million would be added next month to the Ho Chi Minh City's stock market value with the May 18 debut of the city's Infrastructure Investment Co. (CII).

CII said in a statement on Wednesday that 30 million CII shares would be listed. CII mainly invests in urban projects to build roads, bridges, residential areas and also provides consultation on financial investment and collect road tolls.

Its shares jumped to VND33,000 this month from VND19,000 early last month on unofficial markets. Most are held by outsiders, including 12 percent in the hands of foreign investors, company officials said.

Vietnam caps foreign ownership of a listed company at 49 percent.

On Tuesday, state media quoted the market director Tran Dac Sinh as saying six companies were expected to list by June.

Brokers said more shares coming to the market would help meet rising demand from investors, who officials say could have been switching to securities from investment in real estate, gold or foreign currencies, given the quick return on shares.

Source: Reuters