A worker collects latex at a plantation owned by the Binh Duong province-based Dau Tieng Rubber Company, an affiliate of the Vietnam Rubber Group (Photo: VNA)
HCM City (VNA) — Vietnam Rubber Group (VRG) is expected to list its shares on the HCM Stock Exchange in June or July after its initial public offering on February 2.
Pham Van Thanh, head of VRG’s planning and investment department, revealed the IPO road map at an event on January 18.
The corporation will auction 475 million shares, equivalent to 11.88 percent of its total chartered capital of 40 trillion VND (1.76 billion USD).
A similar number will be offered to strategic investors with 831,000 shares earmarked for employees and the trade union.
The State will retain three billion shares or 75 percent of the capital after equitisation.
The minimum price for the auction has been set at 13,000 VND.
Investors have to submit their bids by January 31.
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A month after the IPO, VRG would list on UPCoM, and by June or July at the latest in HCM Stock Exchange, Thanh said.
Last year, the group achieved 3.6 trillion VND in net profit on revenues of 19 trillion VND, easily achieving the targets it had set at the beginning of last year.
The group’s core business is natural rubber, which brings around 70 percent of its total revenues.
According to a Vietcombank Securities (VCBS) report, VRG enjoyed a good year in 2017 thanks to the strong global recovery in natural rubber prices.
VCBS has a positive outlook for the group in 2018 since the price of rubber will still remain high.
Besides, old rubber trees would be a large source of income, the report said.
VCBS has recommended a reasonable price of 16,660 VND for the share in the IPO. - VNA
VNA