The Ho Chi Minh City Stock Exchange (HoSE) has approved the listing of Vietnam Rubber Group with four billion shares, equivalent to registered capital of VND40 trillion (US$1.72 billion).
As of present, Vietnam Rubber Group is the largest firm in terms of registered capital and fourth in market capitalization (VND58 trillion or US$2.5 billion) on the Unlisted Public Company Market (UPCoM), which is considered a transitional step before listing on two main exchanges, behind Airports Corporation of Vietnam (ACV) with market cap of VND161 trillion (US$6.93 billion), Viettel Global with VND77 trillion (US$3.32 billion) and Vietnam Engine and Agricultural Machinery Corporation with VND60.4 trillion (US$2.6 billion).
In February 2018, Vietnam Rubber Group launched its initial public offering (IPO) with over 475 million shares on offer, however, only one fifth of the amount was sold for proceeds of VND1.31 trillion (US$56.39 million).
Once completed listing on HoSE, Vietnam Rubber Group would be the second largest firm in terms of registered capital, behind Bank for Investment and Development of Vietnam (BIDV).
The government currently owns a 96.77% stake at Vietnam Rubber Group, which consists of 106 subsidiaries and 21 affiliates.
At the close on January 2, Vietnam Rubber Group’s share value reached VND11,300 (US$0.49).
Last December, the firm stated it would complete its transition from state-owned enterprise status to joint stock company in the first quarter of 2020 at the latest.
Vietnam Rubber Group estimated its revenue in 2019 at VND29.82 trillion (US$1.28 billion), exceeding 23% of the year’s target, and a pre-tax profit of VND5.13 trillion (US$220.82 million), or 98% of the target, according to CafeF.
As of September 30, the group’s assets stood at VND76 trillion (US$3.27 billion), of which the majority are long-term assets worth over VND58 trillion (US$2.5 billion). Of total asset value, fixed assets were estimated at VND27.7 trillion (US$1.19 billion) in value, up 9% year-on-year.