HÀ NỘI — Việt Nam’s stock market saw a resurgent wave of corporate capital-raising activity in 2025 as initial public offerings, private placements, rights issues and share auctions recorded significant value, prompting discussion among market participants about the implications for market liquidity.

According to securities firm BSC’s analysis of market activity last year, the aggregate value of capital-raising transactions, encompassing IPOs, private placements, rights offerings and share auctions, reached more than VNĐ148 trillion (US$5.7 billion).

Within this total, capital-raising from share issues accounted for nearly VNĐ106.4 trillion, while IPOs at three securities companies absorbed VNĐ35.7 trillion of investor funds. Auction transactions contributed another VNĐ6.7 trillion, led by major deals at the Vietnam Electronics and Informatics Corporation and the Vietnam Investment and Environment Corporation.

BSC’s data illustrates the strength of fundraising appetite in 2025 and signals expectations of further activity ahead.

In particular, the firm noted that planned capital increases, whether through private placements or rights issues, are expected to approach VNĐ100 trillion ($3.8 billion) in total value, a scale that may influence trading dynamics across the broader market.

According to the securities firm, this could affect stock market liquidity as a portion of capital is and will be drawn away in a context where the wave of IPOs, capital increases or share auctions is strongly returning.

The mechanics behind this effect relate to how investors allocate funds between secondary market trading and primary market participation.

When companies launch large fundraising campaigns, particularly IPOs or sizeable share issuances, capital that might otherwise remain in trading pools is instead used to subscribe to new offerings, purchase rights or participate in auction bids.

BSC analysts said that during months with substantial capital mobilisation, market liquidity tends to rise but then contract afterwards, suggesting a cyclical liquidity absorption pattern linked to funding events.

Analysis of historical capital-raising campaigns by major brokerages underscores this dynamic.

For example, SSI undertook a series of 36 capital increases, expanding its charter capital from just VNĐ6 billion at inception to nearly VNĐ20.8 trillion as of September 2025.

BSC found that share prices and trading volumes typically surged in the month before each capital increase announcement, indicating investor anticipation and repricing ahead of subscription deadlines.

After the date when rights or newly issued shares ceased trading, volumes often receded sharply even as prices held firm for a period before later adjustments.

A similar pattern was observed in VNDirect’s capital-raising transactions, where price and liquidity surged ahead of planned issuances, then diminished following rights dates, with a tendency for both to recover somewhat before regular trading in newly issued shares began.

These patterns reflect how capital-raising cycles can both stimulate short-term trading activity and absorb liquidity from the secondary market.

BSC’s commentary highlights that the relative strength of capital-raising waves may alter the composition of liquidity in the marketplace.

During periods marked by large fundraising events, a share of available capital is diverted into the primary market to support IPOs, rights subscriptions and share placements.

Over time, this dynamic can reduce tradable liquidity on stock exchanges and contribute to periods of thinner turnover between fundraising clusters.

The resurgence of corporate capital mobilisation in 2025 came as IPO activity has regained momentum after years of relative dormancy.

Large and mid-cap issuers have attracted strong participation from institutional and retail investors, signalling renewed confidence in equity markets as a source of growth capital.

The scale of fundraising also underscores the stock market’s continued role as a key channel for corporate financing, complementing bank credit and bond markets as sources of long-term funding.

At the same time, the timing and sequencing of these capital-raising efforts appear to intersect with broader market conditions, with liquidity flows fluctuating as investors balance participation in new issuance opportunities against trading in existing listed shares.

BSC’s observations suggest the liquidity environment in the secondary market is shaped not only by price trends and investor sentiment but also by the sizeable capital demands of major fundraising campaigns. — BIZHUB/VNS