The Vietnam National Textile and Garment Group (Vinatex) will launch an initial public offering this month.
Under the approved plan, the garment giant’s IPO would be implemented on the Hochiminh Stock Exchange on July 22 with nearly 122 million shares out of 500 million shares, with a face value of 10,000 VND (0.47 USD), to be publicly auctioned.
The State is to hold 51 percent of the 5 trillion VND (234.7 million USD) charter capital following the IPO.
Further, about 3 million shares, or 0.6 percent of the charter capital, would be sold to Vinatex’s internal staff and 120 million shares, or 24 percent of the charter capital, to strategic partners.
With an initial price of 11,000 VND (0.49 USD) per share, the IPO was expected to raise some 1.22 trillion VND (58 million USD).
Deputy General Director of Vinatex Le Tien Truong said on the sideline of July 2 conference to introduce investment opportunities in Vinatex that a list of the company’s strategic partners had not yet been finalised.
Meanwhile, Tran Quang Nghi, Vinatex’s General Director, said that the group would consider listing on exchanges in three years.
However, in case of advantageous conditions, such as the early signing of the Trans-Pacific Partnership Agreement, the listing would be implemented in a shorter time, perhaps within one to two years.
According to Decree 108 on administrative punishments in the securities sector, which took effect in November 2013, companies must be listed on exchanges within one year from its IPO and could be fined up to 150 million VND (7,140 USD) for being late.
However, in a move to create favourable conditions for companies which have implemented IPO’s or not gained eligibility for listing on exchanges, the State Securities Commission last week released a draft, saying that those companies could register on the Unlisted Public Company Market (UpCoM).
Vinatex is targeted to reach an export turnover of 3.6 billion USD by 2015 and 5 billion USD by 2020.-VNA
Textile and Garment Group prepares for IPO Related image(s)
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