Vietnam’s Thai Hoa Water Supply to launch IPO on June 15

An IPO auction at the Hanoi Stock Exchange

Thai Hoa Water Supply Co Ltd, a company based in the central Nghe An province of Vietnam, will sell 47.5 per cent of its shares to the public on June 15, the Hanoi Stock Exchange announced.

The state capital in Thai Hoa, as at the end of last year, stood at VND45.7 billion ($2.1 million), and the state will continue to hold a 51 per cent stake, equivalent to 2.3 million shares, in the company post IPO.

Each share will be auctioned at the starting price of VND10,000.

Founded in 1998, the state-owned firm is responsible for supplying clean water for household and industrial use, and wastewater treatment. Its supply capacity has doubled to 4,000 cubic metres per day since the inception.

The company was entitled to the loans from the Official Development Assistance (ODA) program and the Asia Development Bank to expand its system in assuring adequate supply locally until 2030.

“Its main business in the recent three years generated revenues of up to VND5.9 billion, making up more than 90 per cent of its total turnover,” the stock exchange said, adding that Thai Hoa also began operating in the drainage and irrigation installation field in 2013.

The company’s profit during the 2012-2014 period ranged from VND16.2 million to VND26.6 million, while the return on assets (ROA) ratio moved between one to two per cent.

It targets profits of up to VND1 billion by 2017. However, dividends paid to shareholders after the equitisation are expected to be low – at two per cent.

Water supply, along with electricity generation and petrol – other necessities for life, has been a long monopolised business in Vietnam.  While the telecommunications sector is no longer a monopoly, the others have been slower in adapting to the free markets. Government officials have explained that because they are the “sensitive” sectors, each policy should be carefully trodden.

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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).

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  • 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.