By offloading more than 48.3 million shares at VND150,000 apiece, Vinamilk expects to raise VND725 trillion ($319.4 million) from the transaction, which is expected to close within this month.
In December 2016, the dairy company had offered 9 per cent of its equity interest through a public auction but only ThaiBev’s Singapore-based unit F&N had purchased a 5.4 per cent stake to consolidate its holding. The sale fetched Vinamilk around $500 million, marking one of the largest stake sell-downs in Southeast Asia in 2016.
The November 10 auction is to dispose of the remaining portion from last year’s transaction. This time, the SCIC has pledged to avoid vested interest and treat investors equally.
Foreign investors are eligible to acquire the entire 3.3 per cent stake, according to Saigon Securities Inc, which is one of the two bookrunners for the deal.
Vinamilk’s shares closed trading on Wednesday at VND155,000 following the auction price announcement. While the country’s biggest brewer Sabeco has seen a staggering increase in its stock price since its debut late last year to become the highest priced stock currently, Vinamilk retains its top position in terms of market capitalization, which has reached nearly $10 billion.
Sabeco is the second largest listed company with an $8.2 billion market value.