Leaders of An Phat Holdings Group strike the gong on its listing at the Ho Chi Minh Stock Exchange (HOSE). (Photo courtesy of An Phat Group) HCM City (VNS/VNA) - The An PhatHoldings Group on July 28 listed 132.6 million shares on the Ho Chi Minh Stock Exchange (HOSE).
The shares coded APH weretraded at a starting price of 41,500 VND (1.79 USD) each and rose to the ceilingprice of 49,800 VND per share after the at-the-opening-order (ATO) session.
An Phat matched a total of 225million shares on the first trading day and was valued at more than 6.6trillion VND (281 million USD).This made An Phat Group become the firm with the highest market capitalisationin Vietnam’s plasticsector.
The valuation was alsoreflected through the successful auction of 4.3 million shares at HOSE in Junewith an average auction price of 50,018 VND each, double the starting price.
An Phat Group said investorssaw the potential of APH's green products and its large scale market bothdomestically and internationally, which was why they paid a price higherthan the starting price at the IPO as well as after being officially listed onHoSE.
Speaking at the listingceremony, DinhXuan Cuong, the group’s vice chairman ofmanagement board said: “In 2020, An Phat Holdings aims to completely focus onbiodegradable product lines so that the autonomy of green materials - the mostimportant factor for product prices, is a top priority. We have solved thisproblem by the IPO to raise capital to build the first fully biodegradableplant in Vietnam, AnBio.”
With the listing on HOSE, APHhopes to attract more investors, both local and foreign.
The AnBio plant would make APHone of the few companies that produce fully biodegradable materials in theworld along with BASF, Novamont, NatureWorks and Total Corbion. It would alsochange APH's position to be both a manufacturer and supplier of greenmaterials. APH is the only Vietnamese enterprise that owns the patent for fullybiodegradable material.
The autonomy of raw materialswould help APH reduce product costs, expand the market while saving productioncosts about 30 percent for subsidiaries while the parent company still enjoys agross profit margin of 25-30 percent of this project. APH targeted that fullybiodegradable products would contribute 40-50 percent to the group's packagingrevenue structure by 2030.
The AnBio plant, with a totalinvestment of 1.5 trillion VND, is expected to start construction in the northern port city ofHai Phong at the beginning of 2021. It isscheduled to come into operation by the end of 2022 with a capacity of 20,000tonnes of products a year.
After nearly 20 years ofoperation, An Phat Holdings has become the largest producer and exporter ofpackaging film in Southeast Asia. The group has expanded its business with15 member companies spread across Vietnam and its branches in countries such as Singapore, theRepublic of Korea, Franceand the US. APH operates mainly in the fields of completely biodegradableproducts and materials, packaging, engineering and interior plastics, precisionengineering and moulds, materials and chemicals in the plastic industry andreal estate.
Last year, its consolidatedrevenue and after-tax profit reached 9.5 trillion VND and 712 billion VND, respectively, representing 19 percentand 305 percent year-on-year increases. Its total assets reached nearly 10trillion VND.
It has targeted net revenue andprofit of 12 trillion VND and 650 billion VND respectively this year. In the long term, APH’s growth momentumwill come from fully biodegradable products through investment in the AnBioplant./.
VNA
