Shares in Vietnam's Thong Nhat Rubber Company (TNC) dropped limit down 20 percent on their debut on the Ho Chi Minh City Stock Exchange on Wednesday.
TNC set a starting price at 50,000 dong ($3.1) each for the shares' first day of listing but investors only paid 40,000 dong ($2.47) for each of the total 98,380 shares sold during Wednesday's trading session, figures from the exchange showed.
The closing price valued the firm at nearly $48 million.
Prior to Wednesday debut, shares in TNC, which is based in the southern province of Ba Ria-Vung Tau, were traded in the unofficial markets at 60,000-65,000 dong ($3.7-$4.0), about four times the average prices fetched in the firm's IPO in March 2006.
TNC produces and exports rubber latex from 2,090 hectares (5,200 acres) of plantations.
Natural rubber is Vietnam's second-largest foreign exchange earning farm product after rice. January to July's rubber exports eased 3.2 percent from a year ago to 344,000 tonnes, government figures show.
Vietnam, the world's fourth-largest rubber exporter after Thailand, Indonesia and Malaysia, aims to raise rubber output to 700,000 tonnes from 550,000 hectares (1.36 million acres) under plantation by 2010, including areas in Laos and Cambodia.
It has projected to export 780,000 tonnes of rubber this year, compared with 708,000 tonnes shipped last year, from 490,000 hectares under plantation.
Thong Nhat Rubber Co targets a flat net profit this year of about 23 billion dong ($1.42 million) as 2007's revenues were expected to remain unchanged from 2006 at 127 billion dong ($7.8 million), its prospectus showed.
Source: Reuters
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