Viet Nam Southern Food Corporation (Vinafood 2) sold its entire offering of nearly 115 million shares, equivalent to 22.97 per cent of its charter capital, in its initial public offering (IPO) on the HCM Stock Exchange on Wednesday.
At the average winning price of VND10,100 per share, equal to the minimum bidding price set for the auction, the State collected nearly VND1.16 trillion (roughly US$51 million) from the share sale.
Before the IPO, 41 investors registered to take part in the auction, including 31 domestic and 10 foreign investors.
Under its equitisation plan, Vinafood 2 has charter capital of VND5 trillion with 51 per cent possessed by the State. The company sold nearly 23 per cent to the public while about 25 per cent will be offered to the strategic investor.
The remainder will be sold to its employees and workers at a preferential price level.
Prior to the IPO, the industry-property-finance conglomerate T&T Group was the only company filing a proposal to become Vinafood 2’s strategic investor.
The selling price for the strategic investor will not be lower than the IPO price. Thus, T&T Group is expected to spend at least VND1.26 trillion for the purchase.
This month, Vinafood 2 will continue working with T&T Group and sell shares to employees.
According to the company’s criteria for strategic investors, the strategic partner must be financially healthy so that it can help the firm restructure its financial system and be able to assist Vinafood 2 in seeking new markets and open new distribution channels in both domestic and overseas markets.
The strategic investor must have operated in the agriculture sector for at least three years; have total assets of at least VND10 trillion by December 31, 2015; and achieving net profits for three consecutive years and reaching a return-on-equity ratio of more than 5 per cent.
Vinafood 2 chairman Vu Ba Vinh said the company’s auction happened in the context of the country’s rapid integration and it hopes to look for qualified investors to contribute to Vinafood 2 strategic business development. — VNS