The sale will be implemented through a public auction, similar to the process carried out SCIC used for disposing of Vinamilk shares.
SCIC will hold 36 per cent of Vinaconex after the transaction, with a full divestment scheduled for completion by 2020.
Details of the divestment including the preference price and bidding process will be announced between November 28 and December 7, the state investor said on Thursday.
Based on the company’s stock price of VND25,600 on Thursday, the disposal is valued at $108.4 million. Vinaconex currently has a market capitalisation of about $500 million.
Saigon Securities Inc has been mandated as the bookrunner for the transaction.
Established in 1988, state-owned Vinaconex, the contractor of major projects, including the new international terminal at Noi Bai Airport, was listed on the Hanoi Stock Exchange in 2008 under the ticker VCG.
The company had successfully raised a combined VND3 trillion though bonds in 2007 and 2010. It said its own capacity would enable another VND3 trillion issuance in case of a need for further fundraising.
Vinaconex is largely owned by domestic investors, with Market Vectors Vietnam ETF as the sole major overseas shareholder, which has a 4.45 per cent stake. Foreign investors are allowed to own a maximum equity of 49 per cent.
SCIC is also planning to offload shares in four other big businesses according to a pipeline it mapped out in 2016. The next divestments include Tien Phong Plastics (in which SCIC holds 37.1 per cent), Binh Minh Plastics (29.51 per cent), medical equipment distributor Domesco (34.71 per cent) and FPT Corporation (5.96 per cent).
The state investor has completed two tranches of sales of Vinamilk shares since December 2016. Fraser&Neave acquired 5.4 per cent of the Vietnamese company for approximately $500 million last year, and Singapore’s Jardine Cycle & Carriage has recently purchased a total of 5.53 per cent shares for $616.6 million.
As at the end of September 2017, SCIC held shares in 133 businesses with a total investment value of $5.4 billion.
The consumer and industrial and construction sectors represent the biggest portions of its portfolio at 33 per cent and 32 per cent respectively.