In listing shares, Masan Resources aims to create cash flow for further M&As and diversify its shareholder base.
Masan Resources JSC held a seminar for investors on July 20, where is announced it had charter capital of VND7.2 trillion ($2334.6 million) and targeted revenue of VND4.2 trillion (195.3 million) for this year and net profit of VND112 billion ($5.2 million).
Masan Resources will be listed on UpCom at the end of the year and its strategic objectives are to create cash flows for merger and acquisition (M&A) activities and to increase shareholder diversification.
It has taken over and is operating the Nui Phao tungsten mine project.
Nui Phao has a 33 per cent global market share in the tungsten market. The company believes that after acquiring one or two bankrupted companies its market share will increase to 51 per cent.
The consultant unit of Masan Resources, Vietnam Capital Securities JSC (VCSC), has released a number of pricing models for reference.
Under methods for price/earnings (P/E), Masan Resources’ share price ranged from VND20,500 ($0.94) to VND70,000 VND ($3.21) per share.
Based on the value of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), a method used for enterprises with high depreciation costs, its share value is from VND18,000 ($0.83) to VND105,000 ($4.81).
And in terms of PB (price to book) value, the company's share price is VND15,091 ($0.69) per share.
Shares in Masan Resources have the potential to have a common dividend at a high cash rate, as the company plans a dividend of 50 per cent of income each year.