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VietNamNews

Rubber giant plans IPO

Update: January, 19/2018 - 09:00
A worker collects latex at a plantation owned by the Bình Dương Province-based Dầu Tiếng Rubber Company, an affiliate of the Việt Nam Rubber Group. — VNA/VNS Photo Đình Huệ
Viet Nam News

HCM CITY — Việt Nam Rubber Group is expected to list its shares on the HCM Stock Exchange in June or July after its initial public offering on February 2.

Phạm Văn Thành, head of VRG’s planning and investment department, revealed the IPO road map at an event on January 18.

The corporation will auction 475 million shares, equivalent to 11.88 per cent of its total chartered capital of VNĐ40 trillion (US$1.76 billion).

A similar number will be offered to strategic investors with 831,000 shares earmarked for employees and the trade union.

The State will retain three billion shares or 75 per cent of the capital after equitisation.

The minimum price for the auction has been set at VNĐ13,000.

Investors have to submit their bids by January 31.

A month after the IPO, VRG would list on UPCoM, and by June or July at the latest in HCM Stock Exchange, Thành said.

Last year, the group achieved VNĐ3.6 trillion in net profit on revenues of VNĐ19 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, the report said.

VCBS has recommended a reasonable price of VNĐ16,660 for the share in the IPO. — VNS

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