Vietnam approves IPO plan for shipping major Vinalines

Moving ahead with its privatisation exercise, the Vietnamese government has approved the sale of 35 per cent stake in Vietnam National Shipping Lines (Vinalines) at a starting price of VND10,000 ($0.4) apiece in its initial public offering (IPO), which is expected to be conducted in September.

Vinalines’ charter capital is estimated at approximately VND14 trillion ($616.7 million). As per the plan, over 280 million shares, equivalent to 20 per cent stake, in Vinalines will be offered for sale in Hanoi Stock Exchange. And, 207 million shares, or 14.8 per cent stake, will be sold to strategic investors. The remaining shares will be sold to employees of the company, according to the plan approved by the government.

Following the sale, the government will retain a 65 per cent stake in the firm. At the price of VND10,000 ($0.4) apiece, the state is expected to earn approximately VND4 trillion ($176.2 million) from the sale.

In a parallel development, SK Group, South Korea’s third-largest multilateral business conglomerate, has expressed interest in the upcoming equitisation of Vinalines and hopes to come in as a strategic investor in the company.

Earlier, Vinalines’ acting CEO Nguyen Canh Tinh had said the shipping carrier had not received any interest from investors although it had actively negotiated with Rent A Port, Deep C, and others for a possible alliance. “Most strategic investors want to own higher rates (49-51 per cent) to gain dominance,” he had told local media.

Vinalines’ 2017 revenue was estimated at VND16 trillion ($702.4 million), exceeding the annual target by 15 per cent. While its profit was VND515 billion ($22.6 million) and total assets stood at over VND18 trillion ($790 million). It is targeting a consolidated profit of $75.8 million on a revenue of $757.7 million by 2020.

Also Read:

Vietnam’s shipping major Vinalines to sell 35% stake in IPO in mid-2018

Vinalines to trim holdings in Hai Phong, Saigon ports to 20% 

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.