Vinatex pins hope on IPO
The Vietnam National Textile and Garment Group (Vinatex) is completing
final steps for its Initial Public Offering (IPO) scheduled for July 22
at the Ho Chi Minh Stock Exchange with great hope for a breakthrough in
its development following equitisation.
The Vietnam National Textile and Garment Group (Vinatex) is completing
final steps for its Initial Public Offering (IPO) scheduled for July 22
at the Ho Chi Minh Stock Exchange with great hope for a breakthrough in
its development following equitisation.
Vinatex will be the first State-owned group to be equitised, with the State still holding a majority stake (51 percent), according to Le Tien Truong, the group’s Vice Director General. He added that when market conditions permit, shares held by the State will continue to be sold with the aim of gradually reducing the State stake to under 51 percent. At the same time, the group will issue more share to raise its charter capital.
The Ministry of Industry and Trade has valued Vinatex at 4,840 billion VND (more than 234.4 million USD), of which 4,300 billion VND is State-owned. The group will raise its charter capital to 5,000 billion VND (more than 238 million USD) after equitisation, through the issuance of a total of 500 million shares, each worth 10,000 VND. The State will hold 255 million shares, while 120 million shares will be sold to the group’s strategic partner. Of the remaining shares, 3,000,850 will be sold to the group’s employees and 121,999,150 shares will be put on auction.
Analysts say Vinatex shares will be attractive to investors, as the garment sector has good development prospects at least until 2030, particularly when Vietnam is on the way to sign a series of Free Trade Agreements (FTAs) and the Trans-Pacific Partnership (TPP). The sector has also enjoyed a wave of foreign investment in recent years.
Vice Director General Truong said while TPP prompts the garment sector to seek domestic suppliers, the equitisation of Vinatex will help the sector move in the right direction, thus bringing true value to the economy.
Statistics show Vinatex produced 111,800 tonnes of yarns, 161.4 million metres of cloth, 210 million pieces of garment in 2013, earning 2.9 billion USD from exports and 1,760 billion VND (83.8 million USD) in pre-tax profit.
In the first six months of this year, the group earned 1.62 billion USD from exports and 11,000 billion VND (523.8 million USD) from domestic sales. Vinatex has set the goal of raising the local content in its products to 60 percent in 2015 and export value to 5 billion USD before 2020.-VNA
Vinatex will be the first State-owned group to be equitised, with the State still holding a majority stake (51 percent), according to Le Tien Truong, the group’s Vice Director General. He added that when market conditions permit, shares held by the State will continue to be sold with the aim of gradually reducing the State stake to under 51 percent. At the same time, the group will issue more share to raise its charter capital.
The Ministry of Industry and Trade has valued Vinatex at 4,840 billion VND (more than 234.4 million USD), of which 4,300 billion VND is State-owned. The group will raise its charter capital to 5,000 billion VND (more than 238 million USD) after equitisation, through the issuance of a total of 500 million shares, each worth 10,000 VND. The State will hold 255 million shares, while 120 million shares will be sold to the group’s strategic partner. Of the remaining shares, 3,000,850 will be sold to the group’s employees and 121,999,150 shares will be put on auction.
Analysts say Vinatex shares will be attractive to investors, as the garment sector has good development prospects at least until 2030, particularly when Vietnam is on the way to sign a series of Free Trade Agreements (FTAs) and the Trans-Pacific Partnership (TPP). The sector has also enjoyed a wave of foreign investment in recent years.
Vice Director General Truong said while TPP prompts the garment sector to seek domestic suppliers, the equitisation of Vinatex will help the sector move in the right direction, thus bringing true value to the economy.
Statistics show Vinatex produced 111,800 tonnes of yarns, 161.4 million metres of cloth, 210 million pieces of garment in 2013, earning 2.9 billion USD from exports and 1,760 billion VND (83.8 million USD) in pre-tax profit.
In the first six months of this year, the group earned 1.62 billion USD from exports and 11,000 billion VND (523.8 million USD) from domestic sales. Vinatex has set the goal of raising the local content in its products to 60 percent in 2015 and export value to 5 billion USD before 2020.-VNA
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