After the equitsion plan, VEAM will have charter capital of VND13.28 trillion. —  Photo baodautu.vn

HA NOI (Biz Hub) — Prime Minister Nguyen Tan Dung has approved the equitisation of the Viet Nam Engine and Agricultural Machinery Corporation (VEAM).

The plan involves selling part of the State's shares and issuing more shares to increase its charter capital.

Following the equitisation, VEAM will have charter capital of VND13.28 trillion (US$595.3 million), equivalent to 1.3 billion shares. Of this figure, the State will hold a 51 per cent stake.

The ministry of trade and industry will represent the state's capital at the company.

Meanwhile, strategic shareholders and employees will hold 36 per cent and 0.49 per cent stakes, respectively. The rest will be sold at the company's initial public offering on the Ha Noi Stock Exchange.

VEAM was established in 1990 and mainly manufactures agricultural machinery. The company has 20 subsidiaries nationwide, including Song Cong Diesel Limited Company, Southern Vietnam Engine and Agricultural Machinery Company Ltd and An Giang Mechanical JSC.

The company targets earning more than VND10.5 trillion ($467.56 million) in revenue this year, a 6 per cent increase compared with last year.

The corporation earned more than VND9.9 trillion ($440.6 million) in revenue last year, a 7 per cent increase compared with its target and a 38 per cent increase compared with 2014. Its export value was $35.6 million, up 7 per cent over 2014.

It also sold 3,219 units in 2015, 34 per cent more than the figure for 2014.—VNS