Government expects to gain over US$1.2 million from VTRI’s IPO

By Linh Lan - Feb 26, 2018 | 02:52 PM GMT+7

TheLEADERthe Government of Vietnam has decided to divest more than 2.26 million shares in Vietnam Textile and Garment Institute (VTRI) in the initial public offering (IPO) on this March 12.

Government expects to gain over US$1.2 million from VTRI’s IPO

According to the announcement of Hanoi Stock Exchange, the Government will sell over 2.26 million shares in this auction with the starting price of VND12,583 (roughly US$0.55) per share.

The number of shares offered for sale accounted for 45.26 per cent of VTRI’s charter capital after its equitization.

The Government expects to gain at least VND28 billion (US$1.2 million) from this IPO.

Like Hanoi Trade Corporation (Hapro), which is going to conduct IPO on March 30, VTRI also owns many land lots and real estate assets in many prime locations of Hanoi and Ho Chi Minh City, which attracts investors.

From 2014 to 2016, the total revenue from production and business activities of VTRI reached an average of VND76 billion (US$3.35 million) per year. In 2017, VTRI ‘s total revenue was nearly VND57 billion (US$2.51 million).

Under the equitization plan approved by the Government, after equitization, no shares shares in VTRI will be held by the State; 474,000 preferential shares (equivalent to a 9.48 per cent charter capital) will be offerred to VTRI’s employees; 2,263,000 shares (45.26 per cent) will be sold to strategic investors; and 2,263,000 shares will be auctioned in the IPO.