Song Da Corp’s IPO to sell 219m shares
State-owned Song Da Corporation will offer 219 million shares at its initial public offering (IPO) scheduled on December 25.
State-owned Song Da Corporation will offer 219 million shares at its initial public offering (IPO) scheduled on December 25.
The shares will be auctioned at the Ha Noi Stock Exchange (HNX) at the starting price of VND11,000 (48 US cents) per share.
The shares offered account for 48.82 per cent of the company’s chartered capital.
According to the IPO plan, following equitisation, the company’s chartered capital will be VND4.5 trillion ($200 million), 51 per cent of which will be owned by the Government.
The company plans to sell 822,000 shares to its employees at preferential prices and nearly 219.7 million shares will be sold to strategic investors through HNX’s auctions.
According to the company’s audited 2016 financial report, it had total assets of VND31.9 trillion by the end of last year. Its owner equity was VND7.83 trillion and total debts amounted to nearly VND24.1 trillion, with short and long term loans amounting to VND17.7 trillion.
In the first half of 2017, Song Da Corp recorded VND9.9 trillion in combined revenue, a decline of 42 per cent year-on-year. However, its six-month post-tax profit rose 30 per cent year-on-year to VND586 billion.
Song Da Corporation is the main contractor for most hydropower projects in Viet Nam. It is also involved in some major infrastructure projects, including tunnels, highways and factories.
The company also plans to divest from several hydroelectricity companies this year, including Ho Bon Hydropower Joint Stock Company, Nam Muc Hydropower JSC and Southern Power Investment & Development JSC. — VNS
