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Vietnam targets raising US$42.56m from Hapro IPO
Nguyen Tung 15:50, 2018/02/15
Vietnam has decided to sell its entire 34.51% stake in Hanoi Trade Corporation (Hapro) in an initial public offering (IPO) scheduled for March 30.
As such, the government will offer 76 million shares in the auction. At a starting price of VND12,800 (US$0.56) per share, the government aims to raise at least VND972.8 billion (US$42.56 million) from the IPO, according to an announcement by the Hanoi Stock Exchange (HNX).
 
Hapro will be the first in Hanoi initiating the equitization process.
Hapro will be the first in Hanoi initiating the equitization process.
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 in Hanoi initiating the equitization process. 

Under the privatization 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 state will no longer hold any shares in the firm. 

Meanwhile, Hapro will sell over 1 million shares to its employees, accounting for 0.49% of its chartered capital, and a further of 143 million shares will be sold to strategic investors, equivalent to 65% of chartered capital. 

Previously, the Hanoi People's Committee has approved the valuation of Hapro being VND4trillion (US$178.4 million) at July 1, 2016. Hapro currently has long-term financial investments at 41 enterprises with total registered capital of VND543.8 trillion (US$24.2 million).

Strategic investors for Hapro must have its equity on the latest financial statement (audited by independent auditor) of over VND2 trillion (US$89.2 million), while the debt to equity ratio is less than 3 times. 

Besides, strategic investors must have expertise in commerce and trade activities, especially with regard to export, domestic market expansion, having its own retail network or enterprise operating in export. 

In 2017, Hapro's net revenue was VND1,927 billion (US$86 million), down 17% year on year, while its pre-tax profit was down 8% at VND11 billion (US$490,600). 

Since the beginning of this year, the Vietnamese government 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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