Cam Ranh Port Company Limited will auction over six million shares in its initial public offering (IPO) on the Hanoi Stock Exchange on March 16, according to its website.

The firm said foreign investors may buy the shares, for which the bidding will initially be set at 10,000 VND (0.48 USD) per unit. Its total charter capital is expected to hit roughly 264.52 billion VND (12.60 million USD) after the IPO.

According to an online prospectus, Vietnam National Shipping Lines (Vinalines) is the parent company of Cam Ranh Port. Vinalines holds this firm's entire state capital of more than 200.5 billion VND (9.55 million USD), as defined on January 1, 2014.

While Vinalines will represent 51 percent of the post-privatisation equity, the six million shares to be auctioned will account for 23 percent, and a similar stake will be sold to strategic investors.

Cam Ranh Port said it is calling for strategic investors who deal in goods import-export, transportation, logistics, and port operation as well as port infrastructure construction. It also needs partners dealing in banking and finance.

The company will reserve a stake of more than 46 percent for other outside shareholders and 2.98 percent for employees.

Cam Ranh Port is based in the central province of Khanh Hoa and specialises in seaport services such as inshore transport, vessel repair and fuel trade, alongside goods loading and storage for hire. The Cam Ranh Port Marine Services joint stock company is its affiliate.

Financial reports said the net turnover of Cam Ranh Port ranged between 75 billion VND and 119 billion VND (between 3.57 million USD and 5.57 million USD) per year over the last three years, with annual growth reaching nearly 35 percent.

Goods loading accounted for 38.7 percent of all revenue, while transport represented 18.9 percent and fuel trade made up 25.7 percent.

The company projected an annual revenue of some 223 billion VND (10.62 million USD) and an after-tax profit of roughly 27 billion VND (1.28 million USD) by 2018. The dividend rate is expected to reach 7 percent by then.

Maritime Bank Securities is the advisor for the IPO.-VNA