Food producer KIDO Group (KDC) announced on Monday that its frozen foods subsidiary, KIDO Food (KDF), would make an initial public offering next month.

Around 11.2 million shares, equivalent to 20 per cent of KDF’s capital, will be offered at a price of VNĐ52,000.

Bidders have to register between March 31 and April 12.

KDF will offer another 15 per cent of its shares to staff in the second quarter, which will have a lock-in period of one year, and keep the remaining 65 per cent.

Before becoming a joint stock company last year, KDF had been closely held by KDC.

After the IPO, its shares would be traded on UPCoM, the company said.

KDF was established in July 2013 after KIDO bought Wall’s ice-cream plant from Unilever.

Since then KDF has been the ice-cream market leader, with its brands like Merino, Celano and Wel Yo having a 35 per cent share last year.

KDC’s CEO Trần Lệ Nguyên said, “KDC will help KDF with developing strategies and managing so that it can achieve its long-term goals.”

Last year KDF more than tripled its charter capital to VNĐ560 billion ($24.5 million), saying it did so to expand operations.

It has two plants, one to make ice-cream in HCM City’s Củ Chi District and the other to make frozen foods in the northern province of Bắc Ninh.

They produce 25 million litres of ice-cream and 25 million litres of Merino and Celano of yogurt per year.

The company plans to expand its frozen foods business with many new products like sausage, meat balls, and shrimp ball.

Last year it reported after-tax profits of nearly VNĐ143 billion ($6.2 million), representing year-on-year growth of 85 per cent.

This year it targets profits of VNĐ200 billion ($8.8 million). — VNS