to sell 15%, reduce State share
HCM CITY — The HCM City
Securities Trading Centre will auction 1.287 million Viet Nam Dairy Product Corp
(Vinamilk) shares, or 15 per cent, at the Reunification Palace on February 17.
At the auction, Vinamilk
will also float almost 208,000 stocks (1.3 per cent) that have not yet been
released in previous sales, bringing the number of shares on offer to almost
The company aims to reduce
State ownership, which has a legal capital of VND1,590 billion (US$100 million),
from 75 per cent to 60 per cent, and turn it into a public one to satisfy one of
the stock market listing requirements.
It is planned that 1.827
million shares, or 11.5 per cent of Vinamilk’s legal capital, will be offered
The remaining 766,000
shares, or 4.8 per cent, will go to the company’s employees at the average
General Director Mai Kieu
Lien said last Friday that the reference price would be VND220,000 for each
share that has a face value of VND100,000. It is said that Vinamilk shares were
traded at around VND225,000.
Registration for a
purchase should be a minimum of 100 shares but the cap is 800,000, according to
Tran Dac Sinh, director of the securities trading centre.
Sinh said bidders will be
able to place orders in person or via mail, which should be sent to the issuance
agent, BIDV Securities Company, HCM City branch, at 146 Nguyen Cong Tru Street,
Once sales are complete,
the State will hold 60.47 per cent, outsiders, 23.23 per cent, and employees,
16.3 per cent.
Vinamilk is a leading
company in the dairy industry and runs seven factories nationwide. The company
takes the lead in fresh milk, drinking yoghurt and condensed milk. It enjoys 35
per cent of the powdered milk and nutritional market and exports products to
markets including the Middle East, the US, Australia and Cambodia.
Last year the company
netted VND464 billion and the figure is expected to reach VND527 billion this
year. However this year’s dividend will be 15 per cent as in 2004.
On the stock market’s
trading, five trading days between January 24-28 saw more than 5.1 million
securities change hands, worth VND440.5 billion. Of the trade volume, bonds
represented 4.07 million and fund certificates, 244,000 units.
Foreign investors bought
1.346 million securities, paying VND138 billion. They sold 381,000 securities
for VND32 billion.
The VN Index declined 1.91
points from a week earlier, before closing last Friday at 234.18.
Sixteen out of 26 listed
firms weakened after a trading week. The plastic firm Danaplast suffered the
biggest loss of 3.33 per cent to close at VND8,700. Forwarder Transimex Saigon
was the least hit among the losers, falling 0.32 per cent to close at VND31,500.
Three companies remained
stable, Bach Tuyet Cotton Co (BBT), at VND10,000, Saigon Hotel at VND13,700 and
the concrete firm BT 6, at VND31,000.
The general trading
company Gilimex was the biggest gainer, rising 8.28 per cent to close at
The company announced
earnings of VND8.5 billion in net profit for the fourth quarter of 2004, from
its total turnover of VND102 billion.
Its figures for the whole
year were VND22.5 billion and VND376 billion, respectively. From each share sold
the company earned VND3,348, and paid 16 per cent in dividends. — VNS