HÀ NỘI – Ceramic maker Viglacera Corporation (VGC) will put up 120 million shares for sale, equivalent to 39 per cent of total outstanding shares, on the Hà Nội Stock Exchange on May 29.

The starting price is set at VNĐ12,300 (54 US cents) per share.

Viglacera is expected to collect nearly VNĐ1.5 trillion ($65.8 million) from the public sale, which will be mainly used to invest in the expansion of the Yên Phong Industrial Park and develop the ultra-white float glass manufacturing factory and sanitary ware plant Viglacera Mỹ Xuân in Bà Rịa-Vũng Tàu Province.

Viglacera has 307 million outstanding shares, equivalent to charter capital of VNĐ3.07 trillion. The company’s charter capital will increase to nearly VNĐ4.73 trillion following the sale.

It is listing 65 million shares on the Hà Nội Stock Exchange, some 39 per cent of its total outstanding shares, at a price of some VNĐ15,500 per share.

Viglacera holds 40 per cent of the market share of building glass, 12 per cent of sanitary ware, 5 per cent of ceramic tiles and 3 per cent of bricks, according to a report by the Bảo Việt Securities Joint Stock Company (BVSC).

The construction materials company owns some 390ha of urban land and 10 industrial parks with total area of 3,560ha in six provinces, mainly in the north, which have attracted 200 enterprises.

There could be a possible dilution of the share price after the sale in the short term, but this will be offset by the company’s strong potential for growth following investment, BVSC’s report said.

Viglacera reported profit of VNĐ242 billion in the first quarter, surpassing its quarterly target by 69 per cent. It aims to earn total pre-tax profit of VNĐ888 billion this year, a rise of 16 per cent year-on-year. – VNS