HÀ NỘI – The Hà Nội Municipal People’s Committee will put up 6.7 million shares of Thống Nhất Electromechanical Joint Stock Company (Vinawind) for public auction on Hà Nội Stock Exchange on March 30.

The move is part of its divestment plan for the 2016-20 period.

The share offer accounts for 46.9 per cent of the company’s charter capital. Foreign investors are allowed to buy the entire share amount.

At a starting price of VNĐ42,400 (US$1.86) per share, the State is expected to collect more than VNĐ284 billion from the auction. This is almost equal to its IPO (initial public offering) price of VNĐ42,383 on March 17, 2015.

Founded in 1965, Thống Nhất is a popular and long-standing brand name among the citizens of Hà Nội, along with Thủy Tạ ice cream, Thượng Đình shoes and Sao Vàng (Golden Star) balm. Thống Nhất produces fans and household electrical equipment.

Unlike many traditional businesses struggling in the face of stiff market competition, Vinawind has had stable business in the last two years, with a revenue of more than VNĐ900 billion and an annual net profit of over VNĐ60 billion.

The company is also a good dividend payer, with a high ratio of 25 per cent expected in 2017 and 2018.

Hà Nội Municipal People’s Committee is Vinawind’s largest stakeholder with 46.9 per cent. The two other main shareholders are Sài Gòn-Hà Nội Insurance JSC (20.98 per cent) and Việt Nam National Aviation Insurance Corp (19.24 per cent).

Vinawind had a charter capital of VNĐ143 billion and total assets worth VNĐ520 billion by the end of 2017, up 23 per cent over the previous year.

In October 2017, the Municipal People’s Committee announced its divestment plan at 96 enterprises during 2016-20, with a total charter capital of nearly VNĐ10.35 trillion, including popular brands such as Hà Nội May 19 Textile Group, Thượng Đình Footwear Co, Thăng Long Mechanical JSC and Hanel Ltd Co. – VNS