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.
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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.
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