The Vietnam Engine and Agricultural Machinery Corporation (VEAM) will trade 1.33 billion shares on the Unlisted Public Company Market (UPCoM) on July 2.

VEAM’s code is VEA and it will debut at VND27,600 (US$1.22) per share, the Ha Noi Stock Exchange said in a statement on Tuesday.

At that price level, the value of the firm is estimated at VND36.6 trillion ($1.5 billion). The company has a charter capital of VND13.3 trillion.

It plans to move to the HCM Stock Exchange in the third quarter of this year.

VEAM used to be a State-owned enterprise and was equitised on January 21, 2017. Current shareholders include the Ministry of Industry and Trade (holding 88.47 per cent of capital), Hoa An Trade and Investment Co. Ltd (six per cent) and foreign investors (3.05 per cent).

VEAM posted VND6.56 trillion in total revenue in 2017, a yearly increase of four per cent. Its post-tax profit in 2017 rose by 13 per cent year-on-year to VND5.1 trillion.

The company targets VND3.54 trillion in total revenue and VND4.9 trillion in post-tax profit in 2018. It expects to pay 28 per cent dividend, almost nine times the 3.7 per cent dividend payout rate in 2017.

In the first quarter of this year, VEAM recorded VND1 trillion in post-tax profit, an annual increase of 27 per cent. — VNS