According to the HCM Stock Exchange, Saigon Port Company Limited will make its initial public offering (IPO) on June 30.
Lastyear the State-owned port's pre-tax profit was 79 billion VND (3.64million USD) on consolidated turnover of 1.073 trillion VND (49.45million USD).
After equitisation, the Government will retain 64 percent of its estimated capital of 2.162 trillion VND (98.9 million USD).
TheIPO will see more than 35.7 million shares with the starting price of11,500 VND sold, equivalent to 16.51 percent of registered capital.
SaigonPort plans to sell another 16.5 percent to strategic partners, butthree investors have registered to buy a combined 102 percent stake.
Manyports have become attractive for major private investors, even as theGovernment and Ministry of Transport want to reduce State ownership inseaports to not more than 51 percent.
Five ports under thecontrol of the Vietnam National Shipping Lines (Vinalines) launched IPOssoon after the Government announced this policy.
The shares of Quang Ninh, Nha Trang, Da Nang, Hai Phong, and Can Tho ports became red hot soon afterwards.
Ina second IPO, Da Nang Seaport sold all 13.2 million shares to fiveprivate companies at a price of 15,677 VND, much higher than its minimumprice of 12,000 VND.
The Oman Investment Fund and the T&T Group also want to buy stakes in Quang Ninh and Hai Phong ports.
Vingroup has said it is ready to buy 80 percent of Hai Phong and Saigon ports.
Last August Vinalines sold 8.5 million shares or 34.7 percent of Nha Trang Port to Vingroup.
HaTinh port reportedly attracted interest from 47 private companies whoregistered to buy more than 8.57 million shares, double the numberplanned, when it equitised in 2008.
The question is, why areprivate investors, including many who have nothing to do with thebusiness, so interested in ports, even those that are not efficient?
Admittedly,cargo volumes are growing and the involvement of private investors intheir management post-IPO means their revenues and profits are soaring.
However,their business is not the only attraction; most ports also enjoy primelocations and have large land parcels, which can be used to developproperty projects.
Quang Ninh Port, for instance, a large portthat can handle vessels of over 75,000 DWT, has four warehouses with acombined area of 10,700sq.m and a 142,000sq.m freight yard. On top ofthat, it is location in a prime place.
Not surprisingly, thoughthe volume of cargo it handles has shrunk significantly in recent yearsdue to various factors, many property developers are keen to get in.
Analystsare clear that the Government's policy of allowing the private sectorto develop transport infrastructure like roads, airports and ports isthe right one since public funds are limited.
But they warn that this should be carefully monitored to ensure public interest is safeguarded.-VNA
Lastyear the State-owned port's pre-tax profit was 79 billion VND (3.64million USD) on consolidated turnover of 1.073 trillion VND (49.45million USD).
After equitisation, the Government will retain 64 percent of its estimated capital of 2.162 trillion VND (98.9 million USD).
TheIPO will see more than 35.7 million shares with the starting price of11,500 VND sold, equivalent to 16.51 percent of registered capital.
SaigonPort plans to sell another 16.5 percent to strategic partners, butthree investors have registered to buy a combined 102 percent stake.
Manyports have become attractive for major private investors, even as theGovernment and Ministry of Transport want to reduce State ownership inseaports to not more than 51 percent.
Five ports under thecontrol of the Vietnam National Shipping Lines (Vinalines) launched IPOssoon after the Government announced this policy.
The shares of Quang Ninh, Nha Trang, Da Nang, Hai Phong, and Can Tho ports became red hot soon afterwards.
Ina second IPO, Da Nang Seaport sold all 13.2 million shares to fiveprivate companies at a price of 15,677 VND, much higher than its minimumprice of 12,000 VND.
The Oman Investment Fund and the T&T Group also want to buy stakes in Quang Ninh and Hai Phong ports.
Vingroup has said it is ready to buy 80 percent of Hai Phong and Saigon ports.
Last August Vinalines sold 8.5 million shares or 34.7 percent of Nha Trang Port to Vingroup.
HaTinh port reportedly attracted interest from 47 private companies whoregistered to buy more than 8.57 million shares, double the numberplanned, when it equitised in 2008.
The question is, why areprivate investors, including many who have nothing to do with thebusiness, so interested in ports, even those that are not efficient?
Admittedly,cargo volumes are growing and the involvement of private investors intheir management post-IPO means their revenues and profits are soaring.
However,their business is not the only attraction; most ports also enjoy primelocations and have large land parcels, which can be used to developproperty projects.
Quang Ninh Port, for instance, a large portthat can handle vessels of over 75,000 DWT, has four warehouses with acombined area of 10,700sq.m and a 142,000sq.m freight yard. On top ofthat, it is location in a prime place.
Not surprisingly, thoughthe volume of cargo it handles has shrunk significantly in recent yearsdue to various factors, many property developers are keen to get in.
Analystsare clear that the Government's policy of allowing the private sectorto develop transport infrastructure like roads, airports and ports isthe right one since public funds are limited.
But they warn that this should be carefully monitored to ensure public interest is safeguarded.-VNA
