VRG to modify equitization plan
The state will hold 96.77% of Vietnam Rubber Group (VRG) charter capital, closing the door for investors to become major shareholder of the company, stated the modified equitization plan approved by the Deputy Prime Minsiter Vuong Dinh Hue.
Following the new plan, VRG charter capital is set at VND40 trillion (US$1.75 billion), equivalent to 4 billion shares at VND10,000 (US$0.44) apiece.
The state will hold 96.77% of Vietnam Rubber Group (VRG) charter capital in new equitization plan.
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In previous plan, VRG has charter capital of VND40 trillion (US$1.75 billion), equivalent to 4 billion shares. The state will hold 3 billion shares, accounting for 75% of the company's charter capital. 475.1 million shares will be sold through initial public offering, or 11.88%; another 475.1 million shares will be sold to strategic investors, or 11.88%; 48.9 million shares to employees and 830,769 to Labor union.
In 2017, VRG's consolidated revenue reached VND21 trillion (US$920.8 million), exceeding 10% of the year target, according to its financial report; the company's after-tax profit is estimated at VND4.1 trillion (US$179.7 million), 30% higher than the year target.
VRG's total assets by the end of 2017 are recorded at VND73 trillion (US$3.2 billion).
VRG currently possesses a land fund consisting of 420,000ha of rubber plantation area (300,000ha in Vietnam, 90,000ha in Cambodia, and 28,000ha in Laos).
The rubber firm previously raised VND1.31 trillion ($57.7 million) from the IPO on Ho Chi Minh Stock Exchange (HOSE) on February 2.
The proceeds were far lower than the state's expectation of raising at least VND6.2 trillion (US$273.1 million) from the IPO with the participation of 499 investors. Only 110.7 million shares were sold of the 475.1 million shares on offer in the auction for an initial price of VND13,000 (US$0.57) per share.
Restricting foreign strategic investors, according to experts, is the main reason that made VRG's IPO less attractive compared to Binh Son Refining and Petrochemical and PVOIL IPOs that raised US$245 million and US$184 million respectively for the Vietnamese government last week. All these IPOs had exceeded government expectations in terms of proceeds, reflecting strong investor interest.
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Read The Hanoi Times to stay up to date on developments in Vietnam.
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