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Hanoi (VNA) — The Vietnam Rubber Group (VRG) will offer 25 percent of its capital during its upcoming initial public offering (IPO), scheduled in the second quarter of 2017, the group has announced.
 
The amount of shares, equivalent to 10 trillion VND (438.6 million USD), will be sold to the company’s employees, as well as the public.

 

The timetable for the first phase of the equitisation has not been disclosed, but will not occur later than June, as set by the Ministry of Agriculture and Rural Development (MARD).

VRG General Director Tran Ngoc Thuan said, due to the huge amount of equitised capital, the group’s shares would be sold to strategic investors in the second phase, after developing criteria for selecting strategic investors.

Important criteria will include financial capability and business areas which should be similar to VRG’s operation, Thuan added.

He noted that many parties had registered to become strategic investors, but they would be scrutinised by MARD and Prime Minister Nguyen Xuan Phuc before receiving approval.

“The list will be disclosed in the future,” Thuan said.

According to the decision of the Prime Minister, VRG will have to equitise the group and its 20 member companies.

In mid-January, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan urged VRG to divest by June 2017.

Last year, the rubber group successfully sold stakes in two subsidiaries, the Tan Bien and Ba Ria limited companies, as well as divested from 24 non-trade units, collecting more than 2.9 trillion VND.

In 2017, VRG has targeted to earn 4.2 trillion VND in pre-tax profits, a year-on-year increase of 47 percent, despite industry forecasts of challenges due to the unpredictable impacts of climate change.-VNA