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State-owned firms set for IPOs this year

Update: January, 15/2014 - 08:35

The most anticipated IPO, however, will be that of Vietnam Airlines.— File Photo

HA NOI (VNS) — As the Government boosts the privatisation, or disinvestment, efforts of state-owned enterprises, several companies will launch initial public offerings (IPOs) and list their shares on the stock exchanges in 2014.

During a meeting with the Ministry of Transport last week, Prime Minister Nguyen Tan Dung urged the restructuring of State-owned companies, especially maritime, shipbuilding and aviation firms.

Minister of Transport Dinh La Thang said 11 corporations in the sector would carry out IPOs this year, including national carrier Vietnam Airlines.

Among these 11 enterprises, the ministry is urging the Viet Nam Motors Industry Corporation to launch an IPO early this year.

The most anticipated IPO, however, will be that of Vietnam Airlines. The flag carrier reported a revenue of almost VND72.6 trillion (US$3.4 billion) in 2013, increasing 8.5 per cent compared with the year's target, and a profit of VND533 billion ($25.1 million), which exceeded the target by 34 per cent. In addition, the first quarter of this year is likely to be the most suitable period for the Viet Nam National Textile and Garment Group to launch an IPO as Viet Nam joins the Trans-Pacific Partnership, which will chiefly benefit the textile and garment industry. Recently, the Prime Minister approved the privatisation plan of the Ha Noi Construction Corporation, which will have a charter capital of VND1.9 trillion ($89.6 million) and offer 49.74 million shares.Other State-owned companies expected to launch IPOs and list their shares include ceramics giant Viglacera, Bach Dang Construction, Hydraulic Construction 4 and the Bank for Investment and Development of Viet Nam.

Experts have said the increase in the volume of shares from these IPOs will be the main force attracting private and foreign capital. There are currently over 700 listed companies on the stock exchanges, but most of them are small firms. Investors are willing to invest in large companies, but they have to wait until these companies launch their IPOs. — VNS

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