Vietnam Medical Equipment Corporation (Vinamed) has worked as a wholly State-owned company in Ha Noi  for the last 30 years.— VNA Photo

HA NOI (Biz Hub) — The state will sell 80 per cent of its stake in Vietnam Medical Equipment Corporation (Vinamed) under the company's equitisation plan, it was announced recently.

Accordingly, Prime Minister Nguyen Tan Dung has approved a plan for equitisation of Vinamed, which was established in 1985 in the capital city to meet the demand for medical equipment in the country.

Under the plan, the health ministry, representing the state ownership in Vinamed, will hold 1.76 million shares or a 20 per cent stake in Vinamed. It now has VND88 billion (US$3.9 million) in charter capital.

Meanwhile, 3.5 million shares, or a 39.77 per cent stake, will be sold to strategic investors, while more than 3.52 million shares or a 40.03 per cent stake will be sold in the initial public offering, and 17,200 shares or a 0.2 per cent of the shares will be sold to local employees.

PM Dung asked the health ministry to guide Vinamed in carrying out the initial public offering at the local stock exchange.

As of the end of September, 109 state-owned enterprises (SOEs) have completed equitisation, while the government had targeted to equitise 289 SOEs this year. This means 180 more should complete the process by the end of the year.

As of September 28, the total state capital divestment was estimated at nearly VND8.7 trillion ($388.5 million), of which VND2.69 trillion ($120.1 million) was divested from the real estate sector and VND1.36 trillion ($60.7 million) from insurance, security and finance-banking sectors.

Besides Vinamed, the health ministry is also expected to conduct the IPO of seven enterprises which have 100 per cent state capital. Thus, the IPO of Ampharco USA JSPC, Central Pharmaceutical Company No.1, Central Pharmaceutical Company No. 1 CPC2, and Hanoi University of Pharmacy will be launched in the fourth quarter of 2015. The ministry will also launch the IPO of Vaccine and Biological Production No1, Company for Vaccine and Biological Production No. 2 and DAVAC.— VNS