Vinatex plans $441m investment after IPO

The Vietnam National Textile and Garment Group (Vinatex) will pour some VND9.4 trillion ($441.3 million) in developing almost 60 garment and textile projects during the 2015-17 period, as it struggles to operate as a joint stock company from January 1.

The country’s leading apparel producer raised VND1.2 trillion ($56.3 million) through offloading 90 per cent of the 122 million shares, offered at one of the stock market’s most remarkable IPOs, last year.

The IPO was one of the most successful in terms of value and attractiveness to foreign investors. It attracted a total of 30 foreign individuals and organisations who purchased 45 per cent of the offered shares, or 11 per cent of Vinatex.

 

Also read: Three Vietnamese firms go for October float

 

However, the biggest change, or challenge, as a joint stock company, according to Vinatex general director Le Tien Truong, is the role of directly implementing investment activities, which was previously the task of its member units.

“Stepping forward on this new model is difficult for us, because the parent company, Vinatex, used to handle only financial management and investment procedures, but now we are switching to really doing business,” Truong said.

Vinatex has not been directly manufacturing its products until now. The group performed the state capital management in its subsidiaries and affiliates. For those that had been equitised, Vinatex manages the remaining state ownership.

The Vinatex leader admitted that being a public company was a “great pressure”, but added that the group would do all that is possible to achieve its targets.

Vinatex is looking at a revenue of VND900 billion ($42.3 million) and a net profit of VND288.4 billion ($13.5 million) for the parent company this year. About VND2.4 trillion ($112.7 million) of the aforementioned investment capital will be disbursed during this year.

After its IPO in September 2014, the Vietnamese government will continue to hold 51 per cent in Vinatex. Meanwhile, two domestic strategic partners, property giant Vingroup – a blue chip on the local stock exchange – and the Vietnam Investment Development Group, hold a combined stake of 24 per cent.

According to Truong, the shares will be listed within at least three years, investors might have to wait only 12 months, as Vietnam has launched a new law urging equitised companies to list within one year after the IPOs.

Related story: Vietnam to launch 292 state co IPOs in 2015

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.