The Ha Noi Municipal People’s Committee will put up 6.7 million shares of Thong Nhat Electromechanical Joint Stock Company (Vinawind) for public auction on Ha Noi 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 VND42,400 (US$1.86) per share, the State is expected to collect more than VND284 billion from the auction. This is almost equal to its IPO (initial public offering) price of VND42,383 on March 17, 2015.

Founded in 1965, Thong Nhat is a popular and long-standing brand name among the citizens of Ha Noi, along with Thuy Ta ice cream, Thuong Dinh shoes and Sao Vang (Golden Star) balm. Thong Nhat 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 VND900 billion and an annual net profit of over VND60 billion.

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

Ha Noi Municipal People’s Committee is Vinawind’s largest stakeholder with 46.9 per cent. The two other main shareholders are Sai Gon-Ha Noi Insurance JSC (20.98 per cent) and Viet Nam National Aviation Insurance Corp (19.24 per cent).

Vinawind had a charter capital of VND143 billion and total assets worth VND520 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 VND10.35 trillion, including popular brands such as Ha Noi May 19 Textile Group, Thuong Dinh Footwear Co, Thang Long Mechanical JSC and Hanel Ltd Co. – VNS