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Home / Investment / Opportunities
Hapro to launch IPO in March
Nguyen Tung 17:08, 2018/03/06
Hanoi Trade Corporation (Hapro) expects to raise at least VND972.8 billion (US$42.56 million) from its initial public offering (IPO) scheduled for March 30, according to the company`s announcement on February 26.
Hapro decided to offer 76 million shares at the upcoming IPO, equivalent to 34.51% of the state capital.
 
With more than 40 subsidiaries under its belt, Hapro operates a chain of supermarkets and convenience stores and owns many land plots and properties at prime locations in the country.
Hapro operates a chain of supermarkets and convenience stores, along with many properties at prime locations in the country.
Under the equitization plan approved by Deputy Prime Minister Vuong Dinh Hue last December, Hapro has a charter capital of VND2.2 trillion (US$96.8 million). After the IPO, the Hanoi People’s Committee, the representative of the State capital in the company, will no longer hold any shares in the firm. 

Additionally, Hapro will sell over 1 million shares to its employees, accounting for 0.49% of its charter capital, and another 143 million shares (65%) to strategic investors.
 
N.A Vietnam Motor (Vinamco), a subsidiary of BRG Group, has been approved by the Hanoi People’s Committee to become the strategic investor of Hapro on January 26. Thus, Vinamco is expected to purchase 65% of Hapro’s shares with price not lower than the lowest successful bid at the IPO, that is, a minimum of VND1.83 trillion (US$80.5 million).
 
Strategic investors for Hapro must have an equity in the latest financial statement (audited by an independent auditor) of over VND2 trillion (US$89.2 million).

Besides, strategic investors must have expertise in commerce and trade activities, especially with regard to export and domestic market expansion. Additionally, they must have their own retail network or enterprise operating in the export sector. 
 
With more than 40 subsidiaries under its belt, Hapro operates a chain of supermarkets and convenience stores and owns many land plots and properties at prime locations in the country.

The company will be the first owned by Hanoi People’s Committee to initiate equitization.
 
In 2017, Hapro's net revenue was reported at VND1,927 billion (US$86 million), down 17% year-on-year, according to the compnay's financial statement, while its pre-tax profit was down 8% at VND11 billion (US$490,600).
 
Since the beginning of this year, the Vietnam has raised a total of US$832.03 million from IPOs of three subsidiaries of PetroVietnam (PV Power, PV Oil, Binh Son Refining and Petrochemical), Vietnam's Power Generation Corp 3 (Genco 3), Vietnam Rubber Group (VRG), and most recently, Vietnam Sugarcane and Sugar Corporation II (Vinasugar II).
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