Viet Nam National Shipping Lines (Vinalines) is seeking to make its initial public offering (IPO) in mid-2018, with an expected chartered capital of US$630 million.

Under the equitisation plan submitted to the government, Vinalines will hold the IPO and operate as a joint-stock company in mid-2018. The State is expected to hold 65 per cent of its charter capital of over VND13.9 trillion, or $630 million.

According to Nguyen Canh Tinh, acting general director of Vinalines, the company will make some changes in its organisation and management after the IPO, in order to expand its access to capital markets and improve capacity and business efficiency.

In the yearly review meeting last week, Vinaline estimated total revenues of nearly VND16 trillion in 2017, up 15 per cent over its target set for the whole year, of which maritime service was the biggest contributor with VND7.1 trillion in revenue. Port operation and shipping services each accounted for more than VND4.4 trillion.

Consolidated profit was estimated at VND515 billion, the highest in the last five years of implementing the restructuring process.

“From being on the verge of bankruptcy five years ago with negative equity of over VND5 trillion, Vinalines has transformed to be eligible for equitisation with total assets of over VND18 trillion,” Tinh said.

Vinalines is a State-owned enterprise under management of the Ministry of Transport. It engages in shipping, port management and maritime service, and logistics aspects in Viet Nam and internationally.

It has a 100 per cent stake in four companies and controlling stakes (50-70 per cent) in 34 subsidiaries, and makes capital contributions to a dozen other companies. — VNS