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Vinatex sells 110m shares worth $58m

Update: September, 23/2014 - 08:55
Vinatex gained over $58 million in its IPO on Monday. — Photo

HA NOI (VNS)  — The Viet Nam National Textile and Garment Group (Vinatex) auctioned 110.56 million shares, or more than 90 per cent of the total, in its initial public offering (IPO) yesterday.

The company gained nearly VND1.22 trillion (US$58.10 million) after selling stakes to 87 investors on the HCM City Stock Exchange with an average bid of VND11,000 ($0.49) per share. Foreign investors included 12 institutions and 18 individuals while local investors included three institutions and 54 individuals.

The IPO is part of a Government-approved privatisation scheme for Vinatex, in line with plans to restructure State-owned enterprises. Under the scheme, the company, with a charter capital of VND5 trillion ($238.10 million), may sell 24 per cent of its equity to strategic investors.

Last week, the company signed contracts to sell stakes to two strategic partners. It sold 50 million shares, or a 10-per cent stake, to property developer Vingroup, and 70 million shares, or a 14-per cent stake, to the Viet Nam Investment Development Group.

Vinatex Chairman Tran Quang Nghi said that with the proper strategies following the equitisation, the company would be delivering the best possible benefits to shareholders and investors. — VNS

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