Investors to buy 110m Vinatex IPO shares

Friday, Sep 19, 2014 17:13

Vinatex workers process cloth. The company's intial public offering takes place at the southern stock exchange on September 22. — File photo

HA NOI (Biz Hub) ─ Eighty-seven investors have registered to purchase 110.56 million shares of the Viet Nam National Textile and Garment Group (Vinatex) at the company's initial public offering (IPO) next Monday.

The volume represents about 90 per cent of the total shares that the company plans to auction in this IPO, which will see an initial bid of VND11,000 (US$0.49) per share, according to the HCM City Stock Exchange.

Foreign institutional investors registered the largest volume with 55 million shares, followed by local individual investors with nearly 53.68 million shares. Foreign individual investors registered 32,900 shares while local institutional investors registered 1.85 million shares.

On Thursday, Vinatex signed contracts to sell stakes to two strategic partners. It transferred 50 million shares, or a 10-per cent stake, to property developer Vingroup, and 70 million shares, or a 14-per cent stake, to the Viet Nam Investment Development Group.

These partnerships and favourable free trade agreements are expected to help the company become an important link in the global garments and textiles supply chain, said Vinatex Chairman Tran Quang Nghi.

The sales of shares are also being done in line with national plans to restructure State-owned enterprises. — VNS

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