Ha Tay Pharmaceutical Co (DHT) was only able to sell 20 per cent of it recent issue of 6.7 million shares, all bought by existing shareholders. The remaining 80 per cent, intended for sale to one or more strategic partners, failed to find any takers, the company announced.

DHT had hoped to raise VND66.7 billion (US$3.2 million) from the issue but ultimately brought in only VND16 billion ($760,000).

Company chairman Le Van Lo blamed the tumbling stock market for hindering his company's efforts to raise capital and find strategic partners.

However, according to a representative of Thang Long Securities Co, DHT's failure to find investors is due to its insufficient preparation for its offering.

"Investors always spend a lot of time assessing a company they will invest in, so a careful preparation or asking a professional intermediary will help enterprises succeed," he said.

Few details were released about DHT's offer besides share price and volume. The shares were offered at VND15,000 per share – 40 per cent lower than their trading price at the time on the Ha Noi Stock Exchange.

"There are potentials for pharmaceutical companies to find strategic partners since foreign investors, especially the Japanese, are keen on the sector," said Domesco Medical Import=Export Co chief financial officer Nguyen Van Hoa, in comments to the newspaper Dau tu Chung khoan (Securities Investment).

Investors may have hesitated over rumours that DHT shares were being manipulated, after its board members registered to buy 1.25 million shares. Shares hit their ceiling prices for five consecutive sessions despite no significant changes in business results.

DHT's leading shareholder holds a 5.3 per cent stake in the company.

(Source: Vietnamnet)