<article>Three Vietnamese state-owned companies are launching their initial public offerings (IPOs) this month in the Hanoi Stock Exchange, in line with the positive forecast for the country’s stock markets.</article>

Three Vietnamese state-owned companies are launching their initial public offerings (IPOs) this month in the Hanoi Stock Exchange, in line with the positive forecast for the country’s stock markets.
The first of these companies, Visaco Mineral and Investment Company (VMI), went public earlier this week, when it issued 5.4 million shares at a start price of 12,500 dong/share  ($0.59 per share), and it is expected to gain VND 54 billion ($2.5 million) from the float.
Single Member Limited Liability – Ha Tinh’s Urban Project Management Company &#8211; is also offering more than 3.3 million shares, at the par value of VND 10,000 per share ($0.47 per share),to the public for the first time on Oct 15.
The company focuses primarily on the provision of public services such as garbage collection (transportations, producing manure from domestic waste and maintenance of trees in the public area. It generated around 60%-67% of total revenue from these activities and the rest 30% from the infrastructure construction in Ha Tinh City.
In the end of the month, DAP-Vinachem, a subsidiary of Vietnam National Chemical Group, will host the IPO for 30.2 million shares at the starting price of VND 10,000 per share ($0.47 per share). It expects to record the charter capital of VND 1.46 trillion ($68 million) after equitization.
According to the report of Vinachem, DAP’s revenue in 2012 increased by 34.30% compared to 2011, but the revenue in 2013 fell sharply by 35% from 2012. Around 99% of DAP’s revenue came from the fertilizer business, which was seriously affected by the global economic downturn and the rising of imported fertilizer from China.
Also, the company’s noncompetitive cost and the downward market price of the fertilizer since 2013 have resulted in the sharp fall of the gross profit in the first six months this year.
Speaking to <a href="http://en.vietstock.vn/">Vietstockvn</a>, Quach Thuy Linh, Head of Analysis Bank Securities Vietcombank (VCBS) said the stock market should see the growth of 25%-30% at the end of this year thanks to the lower interest rate resulting in more business expansion, the bolder agreement Trans-Pacific Partnership (TPP) agreement and the economic recovery.
The outstanding stocks in the last quarter remain in the petroleum companies as well as others with positive performance through each quarter in warehousing and shipping, infrastructure construction and exports.
Last month, Vinatex— Vietnam National Textile and Garment Group— the country’s largest apparel maker, said it had raised VND1.22 trillion ($58 million) by offloading 24.4% of its total shares.
September also saw Southern Airports Services Company (Sasco) get about VND601 billion (US$28.36 million) from its IPO.
But the big test of investors’ appetite for the country’s privatization drive will come in November when its flagship carrier – Vietnam Airlines – sets about selling a minority share. In August, the airline’s president and chief executive Pham Ngoc Minh had said that the company plans to raise 1.5 trillion dong ($70.8 million) by selling a 5% stake to the public. This values the carrier at around $1.4 billion. At the same time, the airline is also in talks with strategic investors for selling a 20% stake.  Vietnam Airlines, which operates over 80 aircraft plans to add an additional 15 aircraft by the end of next year and is betting big on the tourism potential the country offers.
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<pre><a href="http://www.freedigitalphotos.net/images/Charts_and_Graphs_g197-Market_Maker_p109147.html">photo credit: freedigitalphotos.net</a></pre>

Three Vietnamese firms go for October float

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Three Vietnamese firms go for October float

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