14:49 (GMT +7) - Tuesday 22/09/2020


Mid-year IPO for Vinalines

Released at: 11:49, 29/01/2018

Mid-year IPO for Vinalines

Photo from tinmoi.vn

Thirty-five per cent up for grabs, with remainder held by government.

by Quang Huy

Vietnam’s largest State-owned shipping firm and port operator is planning to conduct its initial public offering (IPO) in the middle of the year, according to acting CEO of Vietnam National Shipping Lines (Vinalines) Mr. Nguyen Canh Tinh.

The government has asked for the company to be equitized but plans to retain a 65 per cent stake, he said, with the remainder being sold to local and foreign investors.

According to a plan submitted by the Ministry of Transport to the government for approval, Vinalines’ charter capital stands at nearly VND13.92 trillion ($630 million).

Mr. Tinh said 2017 revenue was estimated at VND16 trillion ($702.4 million), exceeding the annual target by 15 per cent. More than VND4.4 trillion ($193.16 million) came from port services while VND7.1 trillion ($311.7 million) was made from transport services.

Profit was VND515 billion ($22.6 million) and total assets stood at over VND18 trillion ($790 million). It targets consolidated profit of $75.8 million on revenue of $757.7 million by 2020.

The company held a regional maritime exhibition in Singapore last April to present the IPO plan to potential investors, with the original date for the sale being set for December.

Vinalines has worked with the Auditing Company Limited & Vietnam Appraisal and the ATC Auditing and Valuation Firm Company to complete its valuation, which under current regulations must then be appraised by State Audit of Vietnam.

The shipping company once symbolized the post-war promise of Vietnam when it began jockeying for global trade after the US lifted sanctions on Vietnam in 1994. But in 2012 it battled through a major $2.1 billion debt crisis and the arrest of many of its senior executives.

The government has taken cautious measures to hasten the overall equitization process, including forcing public companies to list shares on the local stock exchange.

Vinalines’ IPO was first due to be held in the first quarter of 2015. It proposed removing five ships - Vinalines Global, Vinalines Ocean, Vinalines Sky, Vinalines Trader, and Vinalines Ruby - from the list of assets subject to corporate valuation, which was rejected.

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