The company also saw another batch of 620,500 shares auctioned today at its initial public offer (IPO) on the Hanoi Stock Exchange. This represents 4 per cent of the company’s offer.
The average price was VND10,058 ($0.47) per share. Thus, the company collected VND6.24 billion ($290,200). The highest bidding price was VND15,000.
While the company offers some 16.3 million shares, 29 investors has earlier registered to buy only 620,500 shares, including one organisation, which bought 100,000 units.
VEFAC’s IPO failed to attract retail buyers but was able to raise money by selling a majority stake to Vingroup. The centre is a lucrative business for the realty major because of a line up of realty projects that the Vietnamese state has assigned to VEFAC.
The 16.3 million shares mentioned above account for only 9.76 per cent of the company. Vingroup has committed to repurchase the remaining shares if they fail to get buyers, at the starting price of VND10,050 of the IPO, said VEFAC chairman and CEO Tran Van Tan.
The newly equitised company’s revenue and profit last year reached VND69.7 billion ($3.2 million) and VND6.1 billion ($283,700). It expected profit for 2015-17 period will be around VND6 billion.
As scheduled, VEFAC’s charter capital will be VND1.67 trillion ($77.67 million), in which the Vietnamese government holds 10 per cent, public auction accounts for 9.76 per cent and issuance to its employees is 0.24 per cent. Its registered capital prior to the IPO is VND97.6 billion ($4.5 million).