Friday, December 14 2018

VietNamNews

Vinalines gets PM’s nod to sell 20% stake

Update: June, 22/2018 - 15:29
Vinalines will sell 280.9 million shares, equivalent to 20 per cent of its capital, to the public in its initial public offering (IPO) on the Hà Nội Stock Exchange, expected in August. — Photo cafef.vn
Viet Nam News

HÀ NỘI – The Prime Minister has approved the equitisation plan of Việt Nam National Shipping Lines (Vinalines).

According to the plan, Vinalines will sell 280.9 million shares, equivalent to 20 per cent of its capital, to the public in its initial public offering (IPO) on the Hà Nội Stock Exchange, expected in August.

The minimum bidding price is set at VNĐ10,000 (US$0.44) per share, which values the company at nearly VNĐ14.05 trillion ($616.2 million).

Earlier this month, Vinalines’ acting CEO Nguyễn Cảnh Tĩnh had said the equitisation would be the combination of State capital divestment and new share issuance.

Vinalines has a charter capital of nearly VNĐ14.05 trillion. After the IPO, the State is expected to hold nearly 913 million shares, accounting for 65 per cent of the charter capital.

Vinalines will offer 207.9 million shares, or 14.8 per cent of its capital, to strategic investors. Some 4.6 million shares, equivalent to 0.32 per cent of capital, will be sold to employees, while the preferred shares for the trade union number 500,000.

Regarding labour arrangement post-IPO, the company will downsize the number of employees from the current 1,400 to some 1,100. The management board will supervise the corporation until all assets, capital, labour and land of the company are transferred to the newly established joint stock company.

According to the equitisation plan, Vinalines will hold the first shareholders’ meeting within one month of the IPO and change the company into a joint stock company model.

Vinalines’ consolidated revenue in 2017 was reported at VNĐ16 trillion, 14.8 per cent higher than the annual target, resulting in a net profit of VNĐ515 billion.

In 2018, the group expects to earn a revenue of VNĐ13.6 trillion and a profit of VNĐ667 billion. — VNS

 

 

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