Funds to be used to finance three large-scale real estate projects in Hanoi.
The Vietnam Exhibition Fair Centre One Member Company Limited (VEFAC), which is known as the Giang Vo Exhibition Centre, will conduct an initial public offering (IPO) on March 20.
It will auction 16,266,105 shares on the Hanoi Stock Exchange, equal to 90 per cent of its charter capital, of which 80 per cent will be sold to strategic investors. VEFAC expects the IPO will help it earn VND1.5 trillion ($71.4 million), increasing its charter capital from VND166 billion ($7.9 million) to VND1.666 trillion ($79.3 million).
The proceeds from the IPO will be used to invest in fairs, the exhibition business, and three real estate projects: Nhat Tan - Noi Bai, Me Tri, and Giang Vo.
In 2007 the government assigned VEFAC as the investor of the National Exhibition Centre project, which includes two components projects: the Me Tri project and the Giang Vo project. However, Prime Minister Nguyen Tan Dung recently decided to set aside part of the Me Tri project, which is near Nhat Tan - Noi Bai area, to build agency offices. Therefore, the National Exhibition Centre project is now divided into three components - the Me Tri project, the Nhat Tan - Noi Bai project, and the Giang Vo project.
Nhat Tan - Noi Bai project
Located in the Nhat Tan - Noi Bai area in Hanoi’s Dong Anh district, the project is planned to be an Exhibition City of international standard. The first stage will be built by VEFAC within three years of the IPO.
Giang Vo project
After moving the Giang Vo Exhibition Centre to Nhat Tan - Noi Bai, the land will be used to build a new commercial center, which will be a highlight construction in the city. The project is located in Giang Vo Street and has an area of 68,380 square meters.
Me Tri project
The project will be changed to a cultural center combined with tourism and trade, in the southwest of Hanoi. Revenues earned will also be used for the Nhat Tan - Noi Bai project.