State-owned firms set for IPOs this year

tohang

As the Government boosts the privatisation, or disinvestment, efforts of state-owned enterprises, several companies will launch initial public offerings (IPOs) and list their shares on the stock exchanges in 2014.

The most anticipated IPO, however, will be that of Vietnam Airlines.— File Photo

HA NOI (Biz Hub)— As the Government boosts the privatisation, or disinvestment, efforts of state-owned enterprises, several companies will launch initial public offerings (IPOs) and list their shares on the stock exchanges in 2014.

During a meeting with the Ministry of Transport last week, Prime Minister Nguyen Tan Dung urged the restructuring of State-owned companies, especially maritime, shipbuilding and aviation firms.

Minister of Transport Dinh La Thang said 11 corporations in the sector would carry out IPOs this year, including national carrier Vietnam Airlines.

Among these 11 enterprises, the ministry is urging the Viet Nam Motors Industry Corporation to launch an IPO early this year.

The most anticipated IPO, however, will be that of Vietnam Airlines. The flag carrier reported a revenue of almost VND72.6 trillion (US$3.4 billion) in 2013, increasing 8.5 per cent compared with the year's target, and a profit of VND533 billion ($25.1 million), which exceeded the target by 34 per cent. In addition, the first quarter of this year is likely to be the most suitable period for the Viet Nam National Textile and Garment Group to launch an IPO as Viet Nam joins the Trans-Pacific Partnership, which will chiefly benefit the textile and garment industry. Recently, the Prime Minister approved the privatisation plan of the Ha Noi Construction Corporation, which will have a charter capital of VND1.9 trillion ($89.6 million) and offer 49.74 million shares.Other State-owned companies expected to launch IPOs and list their shares include ceramics giant Viglacera, Bach Dang Construction, Hydraulic Construction 4 and the Bank for Investment and Development of Viet Nam.

Experts have said the increase in the volume of shares from these IPOs will be the main force attracting private and foreign capital. There are currently over 700 listed companies on the stock exchanges, but most of them are small firms. Investors are willing to invest in large companies, but they have to wait until these companies launch their IPOs. — VNS

  • Share:

see also

SSC strengthens role in mobilising medium and long-term capital

SSC strengthens role in mobilising medium and long-term capital

Strategic efforts in legal framework development, market supervision and technological modernisation played a key role in maintaining stability and investor confidence in 2024.
Market tumbles as liquidity surges

Market tumbles as liquidity surges

Market breadth was overwhelmingly negative, with 244 stocks declining compared to just 71 advancing. Trading value on the southern bourse rose sharply to VNĐ17.8 trillion (approximately US$698.9 million), marking a 40.1 per cent increase from the previous session.
Tasco to issue 179 million shares for subsidiary investments

Tasco to issue 179 million shares for subsidiary investments

The offering is expected to raise VNĐ1.78 trillion, which will be invested in subsidiaries, including Tasco Auto, Tasco Insurance  and VETC JSC.
A year-end surge in property bond issuance amid financial challenges

A year-end surge in property bond issuance amid financial challenges

The trend underscores a sector grappling with financial challenges, while seeking innovative ways to restructure debts, ensure liquidity and stabilise operations in a volatile market.
Market ticks up on back of blue-chip stocks

Market ticks up on back of blue-chip stocks

However, foreign capital continued to flow out of the market, with a total net selling value of nearly VNĐ50.4 billion on the two main exchanges.