Saigon Ground Services Ltd (SAGS) is auctioning 19.3% of its charter capital through an initial public offer (IPO) that has been registered on the Ho Chi Minh Stock Exchange (HOSE), for December 8.
The company will be auctioning 2,706,092 shares with a starting (per share) price is VND 12,371.According to the company’s proposal, SAGS proposed charter capital after the equitisation will be VND 140,508 billion ($6.5 million).
According to HOSE updates, 254 investors have already registered for buying 40 million shares of the company; an almost 15 times over-subscription for the shares that SAGS has on offer.
In particular, individual investors have registered to buy 19.5 million shares while companies and corporations have registered for 20.5 million shares.
SAGS IPO has yet to attract any foreign investors.
Before going public, SAGS had offered 2,705,000 shares to three strategic investors – Harbor Investment Corporation (1,826,604 shares or 13 per cent), VietJet Aviation JSC (562,032 or 4 per cent) and the remaining 2.25 per cent to HoanLoc Viet Trading & Investment Corporation.
Starting price per share for strategic investors will be at VND 12,731.
Reportedly, after the equitisation, the parent company of SAGS – Airports Corporation Vietnam (ACV) – which held 100 per cent of the company stake, will still be the largest shareholder (51 per cent) in SAGS. Meanwhile, the strategic investors, the public and employees will hold 49 per cent of the shares in SAGS.
The principal activities of SAGS include, providing services for passengers, parking service, luggage service, technical service and aircraft maintenance, training service and equipment maintenance at the Tan Son Nhat airport. With about 50 per cent market share in service on the airport ground. SAGS reported revenue for the first six months of 2014 with VND 43 billion ($2million) in profit-after-tax.