Following the ongoing restructuring of state-owned enterprises, the Vietnam National Shipping Lines (Vinalines) will be going for an IPO, this quarter. Another newly listed securities firm that raised capital for expanding operations, has debuted on the exchange, below expected levels. In another development, a foreign fund increased its investment in Hai Phong Cement Transport & Trading.
Vinalines to launch IPO in Q1
The state-owned Vietnam National Shipping Lines (Vinalines) today announced its plan of initial public offering (IPO) in this year’s first quarter. Aiming to equitisie the mother company, in lines with the government requirements.
Last year, the company had launched IPOs for 10 subsidiaries (including five from the 2013’s restructuring plan and five of the 2014’s) with the two latest IPOs conducted last month – Can Tho Port and Nghe Tinh Port.
Up to now, five businesses have finished the registration for certificate as joint stock companies, including Hai Phong Port, Nha Trang Port, Da Nang Port, Vinalines Nha Trang.
Nam Can Port is processing its privatising plan and preparing for an IPO this month. Meanwhile, Cam Ranh Port and Sai Gon port are being valued and about to submit the IPO plans to Vinalines’ board of director.
Also, Vinalines will continue divesting from subsidiaries in accordance with the approved plan (Decision 276/QĐ-TTg dated February 4, 2013). In 2014, it divested in several subsidiaries such as Maritime Bank, Nha Trang Port, Vinalines Real Estate, Vat Cach Port, Maritime Engineering and Services.
According to the company’s report, Vinalines’ shipping volume was estimated at 27.55 million tonnes for the year 2014, equal 94 per cent of the previous year. The amount of goods transported through ports was approximately 78.5 million tonnes, up 2 per cent year-on-year.
The company’s total revenue by the end of 2014 reached VND19.8 trillion ($929.5 million) – an equivalent to 96 per cent of 2013′ value. The expected loss is reportedly VND1.625 trillion ($76.3 million), while the loss in 2013 was VND7.6 trillion ($356.8 million).
TVS shares decline during debut
Thien Viet Securities (coded as TVS) had its first trading day on the Ho Chi Minh City Stock Exchange today with 43 million shares at the reference price of VND16,500 ($0.77).
Opening the session, TVS shares were bought at around $0.8 but finally closing down 6.1 per cent to just
Thien Viet’s current charter capital is VND430 billion ($20.18 million). It is listed in the top five brokerages with the highest return on equity (ROE) ratio, at 12.6 per cent for the first nine months of 2014.
Chairman Nguyen Trung Ha holds 22.25 per cent in the company.
Thien Viet Securities is the consulting agency of the recent deal between HCM City Infrastructure Investment and the Philippines’ Metro Pacific Tollways Corporation.
HCT’s major fund shareholder to buy 2,400 shares
Hai Phong Cement Transport & Trading (HCT) has announced that its shareholder, Asia Frontier Capital Vietnam Fund Limited has acquired another 2,400 shares, in addition to the existing shareholding of 163,800 units. The fund’s ownership in the company, therefore, increased to 8.12 per cent from the initial level of 8 per cent.
In a document submitted to the Ha Noi Stock Exchange, the transaction’s purpose is stated “portfolio rebalancing”.
HCT is a Vietnam-based transportation company, mainly offering land and marine transportation for bulk goods and passengers. The company is a subsidiary of the Vietnam National Cement Corporation. In the first half of 2014, its net profit reached $61,000.
Meanwhile, the Cayman Islands fund invests in equities of Asian frontier markets that are seeing increasing consumption due to favorable demographic trends, rising incomes and high GDP growth. It was opened in December 2013.