<article><a href="http://www.cienco4.vn/Pages/default.aspx">Civil Engineering Construction Company No 4</a>, or Cienco 4, is preparing its first, post-equitisation shareholder meeting, scheduled for March 29.</article>

<a href="http://www.cienco4.vn/Pages/default.aspx">Civil Engineering Construction Company No 4</a>, or Cienco 4, is preparing its first, post-equitisation shareholder meeting, scheduled for March 29.
According to documents that are to be submitted at the meeting, Cienco 4 aims at increasing its charter capital to VND1 trillion ($46.77 million) from the current VND600 billion.
The first phase of the capital raising will be implemented in the second quarter by selling shares to existing shareholders. The target is VND720 billion ($33.7 million).
The infrastructure firm reported revenue and profit of VND6.76 trillion ($316.2 million) and VND112 billion ($5.24 million), respectively, last year. It plans to achieve VND7.5 trillion ($350.8 million) revenue and VND155 billion ($7.25 million) profit for the fiscal year of 2015.
In 2014, the total value of its construction contracts reached VND11.72 trillion ($548.2 million), but Cienco 4 expects a lower value ( VND10.4 trillion), this year.
In March 2014, Cienco 4 conducted its initial public offer (IPO) and succeeded in selling the entire 16.1 million shares, gaining VND226 billion.
It was the most successful IPO among the civil construction companies, under management of the Vietnamese Ministry of Transport, which are called “the Ciencos” .Others, including Cienco 5, 6 and 8, could offload less than 13 per cent of the shares on offer.
Late in 2014, the Minitry of Transport fully divested from Cienco 4, selling 35 per cent of it to <a href="http://www.xaydungtuanloc.com/">Tuan Loc Construction Investment</a>, which then became Cienco 4’s parent company by holding a controlling stake of 51.5 per cent.
Another similar model is Cienco 1, which also sold 100 per cent auctioned shares of its IPO. The managing ministry will also divest from Cienco 1, while the company plans to increase charter capital by VND500 billion to VND1.2 trillion this year.
The 35 per cent state capital in Cienco 1 will be sold to a private enterprise, as reported by the local publication <a href="http://www.vir.com.vn/ciencos-expect-to-thrive-with-new-execs.html" target="_blank">Dau tu</a> (Vietnam Investment Review).
In addition, the Ministry of Transport is planning to exit other Ciencos to let investors in. This is expected to improve the operation of these stagnant businesses. <a href="http://www.cienco6.vn/pages/Default.aspx">Cienco 6</a> profit margins are low, and it cannot afford to pay high dividends for shareholders, said the deputy minister Nguyen Hong Truong in a recent interaction with the press.
In <a href="http://www.cienco5.vn/">Cienco 5</a>, the profit are declining. From VND20.7 billion in 2010 to just VND3 billion in 2012. The profit in 2013 rose to VND5 billion but was still a tiny fraction of its VND495 billion capital prior to the IPO.
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Civil Engineering Construction Company No 4, or Cienco 4, is preparing its first, post-equitisation shareholder meeting, scheduled for March 29.


Vietnam's Cienco 4 plans to raise charter capital to $46.77m, post-IPO

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Vietnam's Cienco 4 plans to raise charter capital to $46.77m, post-IPO

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