Viet Nam National Shipping Lines (Vinalines) is expected to hold its initial public offering (IPO) in August and the first general shareholders meeting in September, the group announced.

According to Vinalines, the equitisation plan of its parent company had been submitted to Prime Minister Nguyen Xuan Phuc for approval by the Ministry of Transport.

This is the second time in the last three months, and the third time since 2014, that the equitisation plan of the parent company has been submitted to competent authorities for approval.

Nguyen Canh Tinh, acting CEO of Vinalines said that the equitisation of the parent company would be the combination of State capital divestment and share issuance.

As of the end of Q1 in 2018, in addition to owning a fleet of 92 vessels with a total tonnage of 1.8 million DWT, Vinalines is contributing its capital to 14 seaport enterprises, operating 67 berths with a total length of 11,885 metres, accounting for 27 per cent of the country’s total wharfs and 20 per cent of the country’s total port length.

Of the total 130.9 million tonnes of cargo shipped last year by Vietnamese vessels, Vinalines’ fleet accounted for 20.2 per cent.

“After completing equitisation, Vinalines will have charter capital of over VND14 trillion (US$612.5 million), including state capital of nearly VND12 trillion. For stake value of VND10,000 per share, Vinalines will offer 1.4 billion shares in the upcoming IPO,” Tinh said.

Under the equitisation plan of the parent company, the State will hold 65 per cent of the charter capital, equal to over 910 million shares. Some 208 million shares will be sold to strategic investors, equivalent to 14.8 per cent of the charter capital, nearly 2.3 million shares, equivalent to 0.16 per cent of the charter capital will be sold to employees, and the trade union organisation will be offered shares equivalent to 0.04 per cent of the charter capital.

Thus, compared with the equitisation plan submitted to the Ministry of Transport in late December 2017, the charter capital of Vinalines has increased by VND130 billion.

Vinalines’ consolidated revenue in 2017 was reported at VND16 trillion, 14.8 per cent higher than the annual target, resulting in a net profit of VND515 billion. The group set the target of transporting 21.4 million and handling 97.8 million tonnes of cargo at domestic ports in 2018. Its revenue is expected to reach VND13.6 trillion, with a profit of VND667 billion. — VNS