Steel producer Tien Len will list 54 million shares on the HCM Stock Exchange on March 16, making it the fifth steel producer with shares listed on the southern bourse.

The shares would be offered at an opening price of 30,000 VND and would be allowed to fluctuate by plus-or-minus 20 percent during the first day of trading according to the prospectus.

The offer price was calculated based on the company’s price-to-earnings ratio and potential profitability, as well as the value of its shares on the over-the-counter market, according to Tien Len chairman Nguyen Manh Ha.

Bao Viet Securities Co has worked with the company on calculating the offer price, in addition to serving as the listing consultant, Ha said.

Bao Viet Securities Co, Phuc Tien Trade and Manufacturing Co and Royal International Securities Co are currently the three leading shareholders in Tien Len, which has charter capital of 540 billion VND (28.4 million USD). It plans to increase that figure to 660 billion VND (34.7 million USD) this year by issuing 12 million shares to strategic partners at a price of 25,000 VND each.

Analysts at BETA Securities Co on March 11 said that price represented a good value, with their own analysis suggesting that the shares were worth around 40-51.000 VND per share.

Tien Len had a number of projects ready to be kicked off this year which
had a likelihood of contributing to stronger future business performance, the
analysts said, and steel prices and demand were forecasted to rise this year,
helping boosting business results in the future.

Tien Len reported earning of 5.17 trillion VND (272.1 million USD) and
posted a profit of 187 billion VND (9.8 million USD) in 2009. It has
targeted earning of 10.4 trillion (547.4 million USD) and a profit of 324
billion VND (17.05 million USD) this year./.