Vietnam has decided to sell its entire 34.51 per cent stake in Hanoi Trade Corporation (Hapro) in an initial public offering (IPO) scheduled for March 30.
With more than 40 subsidiaries under its belt, Hapro operates a chain of supermarkets and convenience stores and owns many land plots and properties at prime locations in the country.
According to an announcement by the Hanoi Stock Exchange, the government will offload 76 million shares in the auction. At a starting price of VND12,800 ($0.56) per share, the government aims to raise at least VND972.8 billion ($42.56 million) from the IPO.
Under the privatization plan approved by Deputy Prime Minister Vuong Dinh Hue last December, Hapro has a charter capital of VND2.2 trillion ($96.8 million). After the IPO, the state will no longer hold any shares in the firm.
In 2017, Hapro’s net revenue was VND1,927 billion, down 17 per cent year on year, while its pre-tax profit was down 8 per cent at VND11 billion.
Since the beginning of this year, the Vietnamese government has raised a total of $832.03 million from IPOs of three subsidiaries of PetroVietnam (PV Power, PV Oil, Binh Son Refining and Petrochemical), Vietnam’s Power Generation Corp 3 (Genco 3), Vietnam Rubber Group (VRG), and most recently, Vietnam Sugarcane and Sugar Corporation II (Vinasugar II).