Nguyen Kim Investment and Development JSC has filed to be the strategic partner of Trang Thi Trading and Service, after the state-owned company announced its upcoming initial public offer (IPO) next month.
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Nguyen Kim Investment and Development has activities in various sectors, including food, pharmacy and real estate. Meanwhile, Trang Thi Trading and Service’s investment in real estate has reached $52.4 million so far. It is planning to invest $45.7 million more in new projects, including a VND352 billion ($16.37 million) mixed-use realty in Hanoi centre next year.
Another major area of business of Trang Thi is electronic and household electricity retail.
On June 22, the company will auction 3.1 million shares during the IPO, representing 23 per cent of the charter capital. If Nguyen Kim is approved to be the strategic partner, it will hold a 20 per cent stake in the Hanoi Trade Corporation subsidiary. The state capital in Trang Thi will be reduced to 51 per cent.
Nguyen Van Kim is chairman of Nguyen Kim Investment and Development, holding a 46.4 per cent stake. Food has been the most active contributor to the company’s profit, particularly rice export with investees such as Angimex, Docimexco and Vinh Long Food.
On the retail business front, with the 49 per cent involvement of Central Group’s Power Buy, Nguyen Kim will expand its presence in Vietnam by 150 per cent in terms of physical outlets, by 2020. The oldest electronics retailer in the country expects the partnership will help it safeguard its leading position from competitors like Media Mart, Pico, The gioi di dong (Mobile World) and Tran Anh. However, the latter two focus on mobile device distribution.
Nguyen Kim aims at gaining the largest market share of up to 40 per cent within the next half of 2015.