SCIC raises US$14.5 million from State capital sale

Tuesday, Mar 24, 2020 12:18

The State Capital Investment Corporation (SCIC) has auctioned 17.5 million shares it has in CIENCO5 for US$14.5 million at the Ha Noi Stock Exchange.— Photo

The State Capital Investment Corp (SCIC) has earned VND342 billion (US$14.5 million) for selling a part of its ownership at the Civil Engineering Construction Corporation No 5 (CIENCO5).

SCIC offered to sell 17.56 million shares, equal to 40 per cent of CIENCO’s charter capital, at the starting price of VND19,300 apiece at the Ha Noi Stock Exchange (HNX).

Two institutional investors signed up for the auction. The shares were sold to an institutional investor at VND19,500 apiece on average.

CIENCO 5, a State-owned firm in the transport sector, builds transport, irrigation and hydropower facilities; invests in urban and industrial areas; and gives consulting and designing services regarding transport, civil and industrial facilities.

The company turned joint-stock on June 2, 2014. Prior to the auction, major shareholders, owing more than 5 per cent of the charter capital, were SCIC (40 per cent), Hai Phat Investment JSC (36.7 per cent), Hai Phat Thu Do Investment JSC (15.5 per cent).

In 2018, CIENCO5 earned a total revenue of VND312 billion and a total pre-tax profit of VND892 million, equal to 42.5 and 10.4 per cent of the full-year earnings targets.

The company planned to earn VND466 billion in total revenue for 2019. The earnings report for last year has not been released yet. — VNS

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