Prime Minister approves Vinamotor's equitisation plan

Friday, Feb 07, 2014 17:57

Vinamotor will launch an IPO and list its shares this year. — Photo H.H

HA NOI (Biz Hub) — Prime Minister Nguyen Tan Dung has approved the equitisation plan of the Vietnam Motors Industry Corporation (Vinamotor), which has a charter capital of VND1 trillion (US$47.6 million).

The Ministry of Transport will represent the state's capital in Vinamotor and fix the share price for the initial public offering (IPO).

Under the equitisation scheme, the corporation will sell part of the state's capital and issue more shares to increase its charter capital.

The corporation will issue 100 million shares in its IPO, which is worth VND10,000 ($0.47) each. The state will hold 48,499,900 shares, or roughly 48.5 per cent. About 500,100 shares will be sold to the corporation's workers and trade union members. The public will be able to buy 51 million shares, which is equal to 51 per cent, in an auction.

Vinamotor was established in 1964. It has 360 workers and will let go of 35 workers, each of whom will receive a severance allowance as per State regulations.

Vinamotor will be one of many giant corporations that will launch an IPO and list their shares this year. The others include Viglacera Corporation, which will publicly auction almost 77 million shares on February 20; Vietnam Airlines Corporation; and Vietnam National Textile and Garment Corporation (Vinatex). — VNS

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