The Ho Chi Minh Stock Exchange (HoSE) has approved the listing of Song Hong Garment Joint Stock Company on the southern bourse.

Song Hong Garment JSC will debut on HoSE on November 28 by listing more than 47.6 million shares with the code MSH, the market said in a statement on Tuesday.

The company will start trading at the price of VND45,000 (US$2) per share, making its market capitalisation up to VND2.14 trillion ($95.25 million) on the debut day.

The company’s shares are able to increase or decline within a daily band of 20 per cent on the debut day, meaning its price may rise as high as VND54,000 or fall as far as VND36,000 by the end of the debut.

The company, headquartered in the northern province of Nam Dinh, produces garment products for both domestic and overseas markets and was founded in 1988.

As of October 1, the company had 511 shareholders including four institutional investors and 507 individuals.

From 2014 to 2017 the company’s profit kept increasing from VND142 billion to VND200.4 billion. In the first nine months of 2018, the company recorded nearly VND3 trillion in net revenue – a yearly increase of 21 per cent – and VND273 billion in net profit – a yearly growth of 100 per cent.

From 2015 to 2017, the company paid 45 per cent dividend in cash each year. The cash dividend payout rate is planned at 35-40 per cent for 2018 and 35 per cent from 2019.

Song Hong Garment JSC targets a 7 per cent year-on-year revenue rise for 2018, to land at VND3.5 trillion. Its profit gained 15 per cent to VND230 billion. — VNS