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Malaysia's Samchem plans Vietnam listing for subsidiary

Released at: 14:15, 26/01/2018

Malaysia's Samchem plans Vietnam listing for subsidiary

Photo from samchemsphere.vn

Parent proposes Samchem Sphere JSC lists on Ho Chi Minh Stock Exchange.

by Quang Huy

Malaysian chemical distributor Samchem Holdings Bhd has announced it is exploring the possibility of listing its subsidiary, the Samchem Sphere JSC, in which it indirectly owns 63.25 per cent, on the Ho Chi Minh Stock Exchange (HoSE), Vietnam’s main bourse.

“The proposed listing will enable Samchem to capitalize on the fast-growing Vietnamese economy and the potential growth of the industrial chemical sector in Vietnam,” Samchem Holdings wrote in a filing to Bursa Malaysia.

The listing would provide a platform for Samchem Sphere to obtain listing status and gain direct access to Vietnam’s capital market to raise funds for future expansion and continued growth without having to rely on existing resources, it added.

The VN-Index increased 48 per cent last year, putting Vietnam among the three best-performing markets globally.

Samchem said a corporate adviser licensed in Vietnam has been appointed to evaluate and advise on the proposed listing and noted that it is still in the exploratory and preliminary stage. “Any further material development on the proposed listing will be announced in due course,” it said in a statement.

Incorporated in Vietnam in December 2006, Samchem Sphere is engaged in the distribution of industrial chemical products.

It has registered capital of VND10 billion ($440,000), with Samchem holding 63.25 per cent through its wholly-owned unit Samchem Sphere Export Sdn Bhd. The remaining stake is held by its directors - Mr. Dennis Ho Chin Chye and Ms. Nguyen Thi Thu Thao - with 35.75 per cent and 1 per cent, respectively.

In financial year ending December 31, 2016, Samchem Sphere earned pre-tax profit of $2.68 million on revenue of $56.55 million, accounting for 32 per cent of Samchem’s consolidated revenue for the year.

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