State to offload total holdings at HNX IPO.
The Vietnam National Tea Corporation Ltd (Vinatea) will conduct an initial public offering (IPO) of nearly 11.8 million shares, or 31.8 per cent of its charter capital, at the Hanoi Stock Exchange (HNX) on September 16 as part of its divestment plans and to increase charter capital to VND370 billion ($16.45 million).
There is no limit on purchases by foreign investors.
As at December 31, 2013 the total capital held by the State in Vinatea was VND317 billion ($14.1 million). The State will divest all its holdings at the IPO, with over 23.5 million shares to be sold to strategic investors, 1.6 million to company employees, and over 11.8 million to the public.
HNX said the offering price would be the same as the par value, or VND10,000 ($0.44)
Vinatea expects to record revenue in 2015, 2016 and 2017 of VND241 billion ($10.71 million), VND255.8 billion ($11.37 million), and VND279.6 billion ($12.43 million) and plans a dividend payout ratio of 1.4 per cent, 2.2 per cent, and 2.5 per cent, respectively.
It also targets increasing productivity from 9 tons per ha to 11 tons by 2017.
The company has seven branches and three subsidiaries with tea plantations totaling 1,130 ha, mostly in northern Son La, Yen Bai, and Thai Nguyen provinces.