IPO plan to be submitted to the government.
Vinalines will sell 64 per cent of its charter capital by selling part of the State capital and issuing more shares to raise capital, according to its equitization plan. After its initial public offering (IPO), the State will only hold 36 per cent of charter capital.
Vinalines was valued at $990 million in 2014. Real state capital represents about 42 per cent, which excludes related debts of $572 million.
More than 336 million shares, worth $15.6 million, are expected to be issued to increase charter capital to $432.5 million.
Among the 74 per cent of shares to be sold, 30 and 33.75 per cent will be sold to strategic investors and public participants, respectively.
The criteria to become a strategic partner includes involvement in marine transport, export and import, or exploiting ports, or having charter capital of more than $46.5 million if these conditions cannot be met.
Vinalines has recommended the government allow banks and creditors to convert their debt into contributed capital without paying deposits and not to pay for purchased shares, under existing policies.
To conduct the IPO, Vinalines has to deny responsibility for guaranteeing Vinashin units and units previously under Vinashin, because these units owe banks $151 million.
Only 10.5 per cent of Vinalines' $572 million in debt has been resolved, and after the IPO it must resolve the remainder. It expected that, to 2019, it will complete its debt restructuring (converting the debt of banks and creditors into contributed capital) and balance its cash flow.
After equitization Vinalines will complete procedures to divest from and disband its ineffective subsidiaries. There are eleven companies on the black list, including Quang Ninh Harbor, Doan Xa Harbor, and Quy Nhon Harbor.
In explaining why the State will only hold 36 per cent of Vinalines' shares, the equitization steering committee said that in doing so the State would divest more capital and enhance the competitive capacity of the enterprise. The amount would also allow it to retain its veto on important issues such as restructuring, changing charter capital, and investing in major projects.