FLC concerned about acquisition on surge in trading in its shares

It made the request on Friday after trading in its shares surged 100 times to 100 million, equivalent to 14 percent of its charter capital.

The shares closed 1.4 percent lower at VND10,850 ($0.48) after falling by almost the maximum allowed of 7 percent on the previous four days.

FLC on Ho Chi Minh Stock Exchange (HoSE). Photo courtesy of TradingView

The company said that on Thursday night rumors that its new chairman, Dang Tat Thang, has registered to buy more shares began to spread on social media.

The rumors are not true and have affected investor sentiment, it said.

“The organization or individual that spread the rumor could be trying to acquire the company. This has caused insecurity in the market and uncertainty and loss of faith among investors.”

The “unusual signs” before and after the Friday session could have a severe impact on FLC’s operation and the stability of the market, the company added.

It wants the Ministry of Finance, the State Securities Commission of Vietnam, the Ho Chi Minh Stock Exchange, and the Vietnam Securities Depository to examine the transactions and consider canceling them if violations are found.

Earlier chairman Trinh Van Quyet was arrested Tuesday pending investigation into suspicions of stock market manipulation.

He was holding a 30.34 percent stake in the company at the end of last year.