CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Vietnam rubber giant offers 475 million shares for sale next month
Anh Hong 15:31, 2018/01/19
State-owned giant Vietnam Rubber Group (VRG) will make an initial public offering on February 2 before listing on the Ho Chi Minh Stock Exchange in June or July.
Pham Van Thanh, head of VRG’s planning and investment department, revealed the IPO road map at an event in Ho Chi Minh City on January 18.
Under the plan, VRG will be offering 475 million shares, which represents about 11.88 percent of its charter capital. The shares will be sold at an initial starting price of VND13,000 apiece.
 
VRG shares will be sold at an initial starting price of VND13,000 apiece
VRG shares will be sold at an initial starting price of VND13,000 apiece
A similar number will be offered to strategic investors with 831,000 shares earmarked for employees and the trade union.
Tran Ngoc Thuan, VRG General Director, said that the group will also start to select strategic investors from January 19 to March 29 this year before organizing shareholders meeting in late March.
VRG currently has a charter capital of VND40 trillion (US$1.76 billion), represented by 4 billion shares. Of this, the government will retain a 75 percent stake. The Ministry of Agriculture and Rural Development (MARD) will act as the state’s representative in the sale. 
With the sales of 25 percent of state capital, the VRN’s deal will fetch the state some VND13 trillion (US$572.68 million). 
To ensure that investors will commit to attaching long-term interests to the company even after equitization, the deal also includes a condition of not transferring shares for 5 years.
After the equitisation, VRG will have 99 subsidiary and affiliated companies. The group has completed the equitisation for two member companies and plans to divest from 22 companies. 
Earlier in November 2017, the government approved VRG’s five-year production and business plan for 2016-2020, in which the company targets achieving an average annual growth of 18 percent during the period with total revenue surpassing VND40 trillion (US$1.76 billion) and profit of around VND 9 trillion (US$409 million) by 2020.
Last year, the group achieved VND3.6 trillion in net profit on revenues of VND19 trillion, easily achieving the targets it had set at the beginning of last year.
The group’s core business is natural rubber, which brings around 70 per cent of its total revenues.
According to a Vietcombank Securities (VCBS) report, VRG enjoyed a good year in 2017 thanks to the strong global recovery in natural rubber prices.
VCBS has a positive outlook for the group in 2018 since the price of rubber will still remain high. Besides, old rubber trees would be a large source of income, it said.
VCBS has recommended a reasonable price of VND16,660 for the share in the IPO.
Comments
Other news
15:17, 2024/11/04
Hiring multitaskers: Priority for Hanoi companies
Several sectors experience increased hiring demand in the remaining months of 2024
18:17, 2024/11/03
Hanoi seeks partnerships to build skilled workforce for digital transformation
Vocational training institutions play important roles in developing a quality workforce prepared for large companies.
18:35, 2024/10/30
Hanoi to host Vietnam-Asia Smart City Summit 2024
The summit aims to share best practices and promote cooperation among Vietnam's provinces and cities in building and developing smart cities.
15:53, 2024/10/29
Vietnamese spend $8.9 billion on ecommerce
The total transaction volume in the Jan-Sep period increased by 37.7% compared to the same period last year.
14:48, 2024/10/29
Hanoi steps up inspections to crack down on unsafe food
The purpose of the survey is to gain a thorough understanding of the local food safety situation and to identify non-compliance promptly, allowing for corrective actions to be taken to mitigate health risks.
22:24, 2024/10/23
SEMIEXPO Vietnam 2024 to foster growth of semiconductor industry
The exhibition aims to develop the ancillary industry ecosystem and attract investment from the world's leading semiconductor companies.