Vietnam’s Vimico hopes to offload 25% stake during IPO

Workers on site of a Vimico mine, visual from the company's website

Vietnam’s Vinacomin – Minerals Holding Corporation (Vimico) will be one of the first Vietnamese large, state-owned corporations to conduct initial public offer (IPO) this year.

The member of the Vietnam Coal and Mineral Industries Holding Corporation Limited (Vinacomin) will auction some 46.7 million shares at the starting price of VND10,500 ($0.49), on April 23. Thus, the state ownership in VIMCO will probably reduce by 25 per cent after the equitisation, if the bidding is successful.

The value of the state capital in Vimico as of April last year, stood at VND2 trillion ($93 million). The company’s charter capital after the IPO is expected to reach that number.

Vimico, a mining and processing non-ferrous and rare metals firm, has investment in more than 10 subsidiaries, which operate across industries of mining, hospitality, passenger transportation, mining equipment supply and real estate. Meanwhile, it has also been affiliated with four companies in the construction materials, gold and precious stone trading sectors.

The company has also been granted the right to exploit a spate of Vietnamese high value metal mines, including two copper mines located in the northern Lao Cai province, the Sin Quyen and Vi Kem, with the total reserve of 254,000 tons. Its subsidiaries are also managing several large mines in the north of Vietnam.

The company’s revenue remained high during the 2011-2014 period, ranging between VND2.5-3.2 trillion ($116.3-148.8 million). Deducting costs and expenditures, profit for the years reached some VND100-200 billion ($4.65-9.3 million).

Post IPO, the corporation, as a parent firm, is hoping for a much higher revenue at VND4.3-5.8 trillion ($200-269.8 million) for the 2015-2017 period. However, profit target is modest, anticipated at around VND55-100 billion ($2.6-4.65 million).

Meanwhile, Vimico is planning huge investment in upgrading the capacity of its mining projects of Sin Quyen, Vi Kem and Lao Cai copper smelting plant, mounting to VND7.1 trillion ($330.23 million).

Along with Vimico, two other major units of the coal and mining giant Vinacomin will auction first batches of shares this year, electricity generator Vinacomin Power and Viet Bac Mining Industry Corp.

Vincomin Power’s IPO will take place first, on April 16 with a size of 236.4 million shares. The Vietnamese government is expected to hold 65 per cent in this corporation after Thursday’s IPO.

Also read: 

Vinacomin Power potentially the most valuable state-own enterprise IPO

Vietnam to launch 292 state co IPOs in 2015

Vietnam hastens IPOs of state-owned firms

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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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.