Giang Vo Exhibition Center to publicly auction nearly 10% of shares on March 20, with State to retain 10%.
The Vietnam Exhibition Fair Center One Member Company Limited (VEFAC), which is known as the Giang Vo Exhibition Center, will sell 80 per cent of its shares to Vingroup as its strategic partner. The remaining 20 per cent of shares will be auctioned at an initial public offering (IPO) on March 20. VEFAC's charter capital is expected to increase from VND166 billion ($7.93 million) to VND1.666 trillion ($79.3 million) post-equitization.
According to the Hanoi Stock Exchange, 29 investors will take part in the auction. The number of shares registered for purchase has reached 620,500, accounting for 4 per cent of the total to be publicly auctioned.
Regarding VEFAT selling 80 per cent of share to its strategic partner Vingroup, a representative of the company said that, after becoming the largest shareholder, Vingroup will assist VEFAT in training human resources, improve financial capacity and management skills, and develop market and projects.
VEFAC is located at 148 Giang Vo Street in Hanoi's Ba Dinh district, on an area of seven hectares, including exhibition space and meeting rooms of international scale. In the last three years its profit after tax has ranged from VND3 billion ($142,000) to VND6.2 billion ($295,000).
In the next three years VEFAC will spend VND166 billion ($7.93 million) on investing in fairs and exhibitions as well as three real estate projects: the Me Tri project, the Nhat Tan - Noi Bai project, and the Giang Vo project.
The auction will take place at 3pm on March 20, with a starting price of VND10,050 per share. After the IPO, 10 per cent of VEFAC will be held by the State and 80 per cent by Vingroup, with 0.24 per cent belonging to staff and 9.76 per cent being publicly auctioned.