Vietnam's largest pesticide producer comes on bourse

By Minh Quan - Jul 19, 2017 | 04:23 PM GMT+7

TheLEADERLoc Troi Group, a pesticide and plant nutrition producer, has set July 24th as the date for its listing on Unlisted Public Company Market (UPCoM) with the code LTG.

Vietnam's largest pesticide producer comes on bourse
Photo: Internet

Hanoi Stock Exchange (HNX) has approved the registration of over 67 million stocks of Loc Troi Group on UPCoM. With the offering price at US$2.2 a piece, the market value of Loc Troi Group reaches VND3.7 trillion (about US$163 million).

Its statistics indicated that in 2016, the Group obtained the sale revenue of VND7,784 billion (US$ 342 million), accounting for roughly 20 per cent of the market shares nation wide.

Loc Troi Group was established in 1993 under the name “An Giang Plant Protection Joint Stock Company”. The company owned the charter capital of VND750 million (US$33,000) and 23 staff members. In 2004, it was privatised with a total capital of VND160 billion (US$7 million).

In 2015, the company changed its name to Loc Troi Group and owned the charter capital of nearly VND672 billion (US$29.5 million).

From 2012 to 2014, Loc Troi Group decided to expand its business, focusing on both pesticides and rice trading.

However, in 2015, the revenue of Loc Troi plummeted with a dramatic plunge of nearly 40% in profit. Nguyen Tien Tung - Head of Strategic Department of Loc Troi Group - explained that the restructuring plan of the company accounted for this loss.

In the next five years, Loc Troi wants to reach 120,000 tons of seed rice and hold the 1st position among rice brands. Its market share of pesticides is expected to increase from 20% to 30%. By 2021, the corporation hopes to reach the market value of US$1 billion and earn the after-tax profit of about US$65 million.

Huynh Van Thon - Chairman of the Executive Board of Loc Troi Group - explained, “We decide to go public now to observe the law. Besides, thanks to this opportunity, the liquidity of stocks can improve, and we can get access to long-term funding.”