The state-owned Song Da Corporation will offer 219 million shares at its initial public offering (IPO) scheduled on December 25. (Photo: baodauthau.vn)

Hanoi (VNA) – The state-owned Song Da Corporation will offer 219 million shares at its initial public offering (IPO) scheduled on December 25.

The shares will be auctioned at the Hanoi Stock Exchange (HNX) at the starting price of 11,000 VND per share.

The shares offered accounts for 48.82 percent of the company’s chartered capital.

According to the IPO plan, after equitisation, the company’s chartered capital will be 4.5 trillion VND (198.3 million USD), 51 percent of which will be owned by the Government. The company plans to sell 822,000 shares to its employees at preferential prices and nearly 219.7 million shares will be sold to the strategic investors through HNX’s auctions.

According to the company’s audited 2016 financial report, it had total assets of 31.9 trillion VND (1.4 billion USD) by the end of last year. Its owner equity was 7.83 trillion VND (344.97 million USD) and total debts amounted to nearly 24.1 trillion VND (929 million USD), with short and long term loans amounting to 17.7 trillion VND (779.2 million USD).

The infrastructure company posted consolidated revenues of 9.97 trillion VND (438.9 million USD) in 2016 and net profit of the parent company was 359 billion VND (15.8 million USD)in 2016, down 37 percent from the previous year.

In the first half of 2017, Song Da Corp recorded 9.9 trillion VND (435.8 million USD) in combined revenue, a decline of 42 percent year on year. However, its six-month post-tax profits rose 30 percent year on year to 586 billion VND (25 million USD).

Song Da Corporation is the main contractor for most hydropower projects in Vietnam. It is also involved in some major infrastructure projects including tunnels, highways and factories.

The company also plans to divest from several hydroelectricity companies this year, including the Ho Bon Hydropower Joint Stock Company, Nam Muc Hydropower JSC and Southern Power Investment & Development JSC.-VNA