Vietnam government raises $51m from Vinafood 2’s IPO

The Vietnamese government has raised VND1.16 trillion ($51 million) from selling a 23 per cent stake in Vietnam Southern Food Corporation (Vinafood 2) in its initial public offering (IPO) in Ho Chi Minh City Stock Exchange on March 14.

The auction attracted 41 investors, including 40 individual investors and one organization, to buy 114.83 million shares on the offer for sale. The highest bid value reached VND12,000 ($0.53) per share. The proceeds were in line with the government’s expectation.

The sale of Vinafood 2 is part of Vietnam’s broader privatization programme. Under the equitization plan approved by Vietnam’s Prime Minister, Vinafood 2 will sell another 25 per cent to strategic investors.

Vietnam-based multi-sector firm T&T Group was earlier reported to have acquired a 25 per cent strategic stake in IPO-bound Vinafood 2. With the price for the strategic stake sale expected to at least match the IPO starting price of VND10,100 ($0.45) per share, T&T Group may have had to pay at least VND1.26 trillion ($56 million) to purchase the 25 per cent stake.

In a previous statement, Vinafood 2 said T&T Group was the only company to submit a bid to become a strategic investor so far. The interest in acquiring a Vinafood 2 stake comes as T&T Group plans to expand its presence in the agricultural sector.

Vinafood 2 specializes 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.

The agriculture firm is targeting VND11.89 trillion ($523.1 million) net revenue and VND118 billion ($5.19 million) after-tax profit in the first year after equitization.

Its net revenue in 2016 stood at VND9.95 trillion ($437.8 million), down 36 per cent year-on-year. By the end of 2016, the company recorded a net loss of VND798 billion ($35.1 million). By mid-2017, the accumulated loss had increased to VND912 billion ($40.1 million).

Also Read:

T&T Group seeks to acquire 25% of Vietnam’s rice exporter Vinafood 2

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

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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.