Nearly 16 million shares to be sold from December 22 to January 20.
Vingroup (Security Code: VIC) has recently announced its intention to sell 15.8 million shares in the Vietnam Exhibition Fair Center (VEFAC), the owner of the Giang Vo Exhibition Center in Hanoi. The shares represent 9.42 per cent the company’s charter capital.
Transactions will take place from December 22 to January 20. It is expected that VEFAC’s shares will be put on the UpCom stock market on December 22.
After selling the shares Vingroup will still have 133.3 million, or 80 per cent of VEFAC’s charter capital. The aim of the move is to lower Vingroup’s shareholding in its subsidiary and attract other investors.
In its equitization plan VEFAC estimated its charter capital at VND1.666 trillion ($73.97 million), in which the State would hold 10 per cent, strategic investors 80 per cent, with the remainder to be sold at auction.
The IPO was unsuccessful, however, so Vingroup had to hold another 9.42 per cent, for a total holding of 89.42 per cent. “Buying an additional 9.42 per cent was not in the initial plan of the group, and this would be a long-term investment that would need a financial commitment for many years,” a representative of the group told local media. He added that the sale would ensure transparency in later activities and have no effect on its commitment and ownership.
VEFAC is located at 148 Giang Vo Street in Ba Dinh district on an area of 7 ha, with a showroom system, conference rooms, and full infrastructure. It can be used to hold exhibitions of international scale or a few events at the same time.
Over the last three years, profit after tax was from VND3 billion ($133,200) to VND6.2 billion ($275,280) per year, with a profit margin on sales of around 1.6 to 9 per cent.