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 / 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.
Comments
Other news
14:43, 2024/11/18
Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
The Vietnamese leader urges the aircraft manufacturer to collaborate on technology transfer, airport construction and operation, research, and investment in Vietnam.
21:55, 2024/10/22
Better links with FDI firms to support Hanoi businesses
Hanoi will continue to focus on quality projects, especially with partners such as Japan, the United States, and Europe to boost technology transfer.
15:24, 2024/09/24
Vietnam calls for more US investment in innovation, hi-tech
The Vietnamese leader called on relevant agencies to resolve any challenges faced by investors and enhance the investment climate to encourage greater US investment in Vietnam.
14:13, 2024/09/23
Vietnamese leader urges Boeing to build production facility in Vietnam
Boeing is committed to continuing to support the development of Vietnam's aviation ecosystem, focusing on aviation infrastructure, human resources training, airport construction, and aircraft maintenance facilities.
14:38, 2024/09/17
Foreign capital pouring into Vietnam's real estate market
Experts are optimistic that the 2024 Land Law, once enacted, will help resolve legal bottlenecks and attract more FDI.
16:27, 2024/08/24
Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.