HÀ NỘI — State-owned shipping firm Việt Nam National Shipping Lines, raised a meagre VNĐ54.3 billion (US$2.33 million) from an initial public offering (IPO) at the Hà Nội Stock Exchange on Wednesday.

The firm had set an earning target of VNĐ4.89 trillion.

The company, better known as Vinalines, sold 5.43 million shares or only 1.11 per cent of shares offered at the IPO, at an average price of VNĐ10,002 a piece.

“Though Vinalines’ business performance has improved recently, the shipping industry hasn’t got out of a time of crisis,” Vinalines CEO Nguyễn Cảnh Tĩnh said.

“This is why the IPO didn’t attract investors in the short term,” the CEO added.

Vinalines shares will be listed on the Unlisted Public Company Market (UPCoM) within the next three months, Tĩnh said.

Vinalines sold the shares to 40 individual investors and two corporate investors. Foreign investors bought 6,200 shares.

The float is part of Việt Nam’s ambitious plans for IPOs for 64 State firms this year, as it looks to fill Government coffers with public debt levels nearing the mandated ceiling of 65 per cent of gross domestic product (GDP).

Vinalines hoped to raise some $210 million from the sale of 488.82 million shares, or a 34.8 per cent stake, via the IPO.

Vinalines is a leading company in maritime transportation and logistics, shipbuilding and seaport exploitation in Viet Nam. Some of its affiliates are the Hải Phòng Port JSC, Sài Gòn Port JSC, the Việt Nam Ocean Shipping JSC, the Việt Nam Sea Transport and Chartering Company and Vinaship.

According to the company’s audited consolidated financial statements for 2017, Vinalines suffered an accumulated loss of nearly VNĐ3.3 billion. Total assets and equity were VNĐ28.1 billion and nearly VNĐ8 billion, respectively.

In the first half of this year, Vinalines recorded revenue of VNĐ6.3 trillion and net profit of VNĐ23.9 billion. In the second half, the company plans to attain revenue of VNĐ7.3 trillion, of which shipping activities are hoped to contribute VNĐ2.4 trillion, while seaport exploitation is set to make up more than VNĐ2 trillion, with the rest generated from marine services. The profit for the second half is expected to reach VNĐ202 billion.

In 2019, Vinalines aims at revenue of VNĐ12.7 trillion and pre-tax profit of VNĐ711 billion. The corresponding figures for 2020 are VNĐ13.4 trillion and VNĐ953 trillion, respectively. — VNS