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Home / Investment / News
Vinafood II raises US$51 million through IPO
Ngoc Thuy 21:43, 2018/03/14
Vietnam Southern Food (Vinafood II) has raised VND1.16 trillion (US$51 million) from selling its 22.97% stake in an initial public offering (IPO) on March 14 at the Ho Chi Minh Stock Exchange.
The company sold all of the 114.83 million shares, equivalent to 22.97% stake on offer with the average successful bidding price of VND10,101 (US$0.44), according to the Ho Chi Minh Stock Exchange.
 
Vinafood II specializes in trade, food import and export, processed food, agricultural products, and storage.
Vinafood II specializes in trade, food import and export, processed food, agricultural products, and storage.
The sale of state-run Vinafood II is part of Vietnam’s broader privatization program to increase efficiency and performance of state-owned enterprises.
Currently, Vinafood II's charter capital is VND5 trillion (US$220.51 million), equivalent to 500 million shares with  unit value of VND10,100 (US$0.44). Under the current plan, the government holds 255 million shares, representing 51% of its charter capital. The Ministry of Agriculture and Rural Development will represent state ownership in the company after the equitization. 
Vinafood II expects to offload a further 125 million shares to strategic investors, representing a quarter of Vinafood II's charter capital. In late February, T&T Group became the sole investor registering to be strategic investor of Vinafood II. Consequently, the group is expected to part with VND1.2 trillion (US$52.8 million) for this deal.
Based on a report released by Vinafood II, the company has been facing difficulties in business activities of late. Specifically, revenue in 2015 was recorded at VND22.7 trillion (US$1 billion), which is lower than the 2016 revenue of VND26.3 trillion (US$1.1 billion). 
Also in 2015, Vinafood II reported a loss of VND9 billion (US$396.000), taking the accumulated losses to VND1.06 trillion (US$46 million), while in 2013 and 2014 the company suffered losses of VND268 billion (US$11.8 million) and VND907 billion (US$39 million), respectively. 
Vinafood II set the objective of reaching VND11.9 trillion (US$524.8 million) in revenue and VND118 billion (US$5.2) in after-tax profit, respectively, after the equitization. 
Vinafood II  specializes in trade, food import and export, processed food, agricultural products, and storage. The company currently owns a distribution system connecting the southern provinces of Vietnam. 
Vietnam is the world’s third-largest rice exporter. The country is projected to export 6.5 million tonnes of rice this year, up 12% from last year.
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