|The Mỹ Đình Urban Area in Mễ Trì Commune, Nam Từ Liêm District, Hà Nội - a real estate project developed by the Sông Đà Corporation. - VNS Photo Đoàn Tùng|
HÀ NỘI – The State-owned Sông Đà Corporation (Sông Đà) will offer nearly 220 million shares at its initial public offering (IPO) next month, the company said in a statement on its website.
The IPO will be held on December 25 at the Hà Nội Stock Exchange. The shares will be sold at the starting price of VNĐ11,000 (49 US cents) per share.
The shares offered at the IPO equal 49 per cent of its charter capital, which is VNĐ4.5 trillion ($200 million), or 450 million shares, the company said.
The company expects to raise more than VNĐ2.4 trillion from the IPO. It also plans to sell 822,000 shares to its employees at preferential prices.
After the IPO, the Government will hold 51 per cent of the company’s capital, but reduce it to below 50 per cent by the end of 2019.
Sông Đà secured the Prime Minister approval in June to sell 135 million shares (30 per cent of the charter capital) to its strategic investor and offer 84.77 million shares (18.82 per cent of capital) at its IPO.
The total amount of shares sold to the strategic investor and at the IPO in the previous plan would be equal to the amount of shares that Sông Đà plans to sell at its coming IPO.
Therefore, under the latest arrangement, the company would have no strategic investor.
According to the company’s audited 2016 financial report, it had total assets of VNĐ31.9 trillion by the end of last year. Its owner equity was VNĐ7.83 trillion and total debts amounted to nearly VNĐ24.1 trillion, with short and long term loans amounting to VNĐ17.7 trillion.
The infrastructure company posted consolidated revenues of VNĐ9.97 trillion in 2016 and net profit of the parent company was VNĐ359 billion in 2016, down 37 per cent from the previous year.
In the first half of 2017, Sông Đà Corp recorded VNĐ9.9 trillion in combined revenue, a decline of 42 per cent year on year. However, its six-month post-tax profits rose 30 per cent year on year to VNĐ586 billion.
Sông Đà Corporation is the main contractor for most hydropower projects in Việt Nam. It is also involved in some major infrastructure projects including tunnels, highways and factories.
The company also plans to divest from several hydroelectricity companies this year, including the Hồ Bốn Hydropower Joint Stock Company, Nậm Mức Hydropower JSC and Southern Power Investment & Development JSC. – VNS