FLC scandal: 2 more stocks forced to be delisted from HoSE

FLC Mining Investment & Asset Management JSC and FLC Stone Mining and Investment JSC have been forced to delist their GAB and AMD stocks, respectively, from the Ho Chi Minh City Stock Exchange (HoSE), according to the bourse’s announcement issued on Tuesday.

01:39 02/07/2023

The HoSE said it made this move to protect the interests of investors, as these two affiliates of Vietnam’s leading conglomerate FLC Group were found to have failed to fulfill their financial obligations to the southern bourse, violated regulations on information disclosure and other issues.

Prior to the forced delisting, the HoSE had suspended GAB and AMD from trading their stocks on the southern exchange, as they submitted their reviewed 2022 semi-annual financial reports more than six months later than required.

Also, they had been put on the HoSE watch list for missing the deadlines to submit their audited financial statements for 2022.

Both have yet to take remedial actions to get rid of the trade suspension and supervision, the HoSE said.

As of Wednesday, AMD remained at VND1,110 (US$0.04) per stock while the price of GAB was VND196,400 ($8.34) after they were suspended from trading, starting on March 9 and February 27 this year, respectively.

In related news, Ministry of Public Security investigators recently pressed charges against 15 more individuals for being allegedly involved in former FLC chairman Trinh Van Quyet’s stock market manipulation scandal.

Since the arrest of Quyet last year to serve a probe into the case, the business performance of both FLC Group and its affiliates have been negatively affected.

Five out of seven members in the FLC family have been forced to delist their stocks from the local stock exchanges as of now, including FLC of FLC Group JSC, ROS of FLC Faros JSC, HAI of HAI Agrochem JSC, and the two latest AMD and GAB.

Meanwhile, the remaining two, KLF of CFS Investment and Import Export Trading JSC and ART of BOS Securities Corporation, were suspended from trading and are facing a forced delisting risk if they fail to publish their audited financial reports.​