<article><a href="https://www.dealstreetasia.com/?s=Viet Nam Southern Food Corporation (Vinafood 2)" target="_blank" rel="noopener">Viet Nam Southern Food Corporation (Vinafood 2)</a> has received approval for its $220 million initial public offering (IPO) from Deputy Prime Minister Vuong Dinh Hue, said a report in Vietnamnet.</article>

<a href="https://www.dealstreetasia.com/?s=Viet Nam Southern Food Corporation (Vinafood 2)" target="_blank" rel="noopener">Viet Nam Southern Food Corporation (Vinafood 2)</a> has received approval for its $220 million initial public offering (IPO) from Deputy Prime Minister Vuong Dinh Hue, said a report in Vietnamnet.
As part of the offer, the company will issue 500 million shares at the starting price of VND10,100 within the next three months, bringing the offering’s initial value to VND5 trillion ($220 million).
While the State, represented by the <a href="https://www.dealstreetasia.com/?s=Ministry of Agriculture and Rural Development (MARD)" target="_blank" rel="noopener">Ministry of Agriculture and Rural Development (MARD)</a>, will hold 255 million shares equating to 51 per cent stake after the offering, about 114.8 million shares, representing 22.97 per cent of the charter capital, will be issued to the public. Strategic investors will be able to purchase 125 million shares, representing 25 per cent Vinafood 2’s charter capital.
Besides, nearly five million shares will be sold to employees, equivalent to 0.99 per cent of the issued capital, while the balance 0.04 percent equating to 200,000 shares will be sold to the trade union organisation.
According to Vinafood’s invitation to investors, strategic investors must have total assets of at least VND10 trillion, minimum chartered capital of VND3.5 trillion and record positive after-tax profit in three consecutive years with no accumulated losses by the end of 2015, the report said.
Hue had ordered the extension of Vinafood 2&#8217;s IPO in June last year to review, update and adjust the value of enterprises as per regulations. Previously, he had agreed to extend the offering until January 30, 2017. The deputy PM then had also requested the MARD to adjust the stake percentage of the State when equitising Vinafood 2, based on the decision on criteria and classification of State-owned enterprises in the 2016-20 period.
Vinafood 2 specialises in processing and trading food, importing and exporting agricultural products, and storage. The company currently owns the distribution system throughout the southern provinces of Vietnam.
However, the company is not faring well financially. As of June 2017, the company had total assets of some VND8.8 trillion and long-term loans of VND3.77 trillion. The equity and accumulated loss of the company were recorded at VND3.89 trillion and VND912 billion, respectively, the report said.
In the first half of last year, Vinafood 2 reported a loss of VND118 billion while it gained VND156 billion in profits in 2016 and VND136 billion in 2015.
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As part of the offer, the company will issue 500 million shares at the starting price of VND10,100 within the next three months.

Vietnam: Vinafood 2 gets nod for $220m IPO, to offer 25% to strategic investors

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Vietnam: Vinafood 2 gets nod for $220m IPO, to offer 25% to strategic investors

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