Friday, 15:58 19/01/2018
Vietnam Rubber Group schedules IPO for next February
Vietnam Rubber Group (VRG) will offer 11.88% of its charter capital in an Initial Public Offering (IPO) on the Ho Chi Minh City Stock Exchange (HOSE) on February 2.
According to VRG’s announcement, over 475 million shares, equivalent to 11.88% of VRG’s charter capital of VND40 trillion (US$1.7 billion), will be sold in the upcoming IPO with the initial price of VND13,000 (US$0.57) per share, fetching VND6.2 trillion (US$273 million) in proceeds.
After the IPO, VRG is set to sell a further 475 million shares, or 11.88% of its charter capital to strategic investors through private placement, while the remaining nearly 50 million shares (1.24% of the charter capital) will be sold to VRG’s employees and Trade Union members, according to the equitization plan approved by Deputy Prime Minister Vuong Dinh Hue.
In total, VRG will expect to raise VND12.8 trillion (US$566 billion) for a total of 25% shares offered.
The Ministry of Agriculture & Rural Development (MARD) will be the representative of the State’s holding of 3 billion shares, accounting for 75% of the company’s charter capital.
Notably, strategic investors must be domestic companies with a charter capital of at least VN1 trillion (US$44.1 million) and generating profit in the latest 3 years. Moreover, strategic partners will be required to hold VRG’s shares for at least 5 years, with the state having the right of first purchase in case the strategic partners decide to sell afterwards.
VRG currently possesses a land fund consisting of 420,000ha of rubber plantation area (300,000ha in Vietnam, 90,000ha in Cambodia, and 28,000ha in Laos).
At the end of June 2017, VRG’s total consolidated asset value was VND72 trillion (US$3.1 billion), including 22.7% of short-term and 77.3% of long-term assets.
The rubber firm’s net revenue in the first nine months of 2017 stood at VND354.4 billion ($15.6 million), up 83 per cent year-on-year. The group’s after-tax profit stood at VND708.8 billion ($31.2 million), 2.3 times as much as in the same period in 2016.
Earlier, in November 2017, the Prime Minister approved VRG’s five-year production and business plan for 2016-2020.
Accordingly, VRG set the target of achieving an average annual growth rate of 18% during the period, with total revenue surpassing VND40 trillion (US$1.8 billion) and profit being in the range of VND9 trillion (US$409 million) by 2020.
As part of its multi-sector investment strategy, VRG also operates in hydropower and cement production, as well as construction, and banking.
VRG plans for February IPO.
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In total, VRG will expect to raise VND12.8 trillion (US$566 billion) for a total of 25% shares offered.
The Ministry of Agriculture & Rural Development (MARD) will be the representative of the State’s holding of 3 billion shares, accounting for 75% of the company’s charter capital.
Notably, strategic investors must be domestic companies with a charter capital of at least VN1 trillion (US$44.1 million) and generating profit in the latest 3 years. Moreover, strategic partners will be required to hold VRG’s shares for at least 5 years, with the state having the right of first purchase in case the strategic partners decide to sell afterwards.
VRG currently possesses a land fund consisting of 420,000ha of rubber plantation area (300,000ha in Vietnam, 90,000ha in Cambodia, and 28,000ha in Laos).
At the end of June 2017, VRG’s total consolidated asset value was VND72 trillion (US$3.1 billion), including 22.7% of short-term and 77.3% of long-term assets.
The rubber firm’s net revenue in the first nine months of 2017 stood at VND354.4 billion ($15.6 million), up 83 per cent year-on-year. The group’s after-tax profit stood at VND708.8 billion ($31.2 million), 2.3 times as much as in the same period in 2016.
Earlier, in November 2017, the Prime Minister approved VRG’s five-year production and business plan for 2016-2020.
Accordingly, VRG set the target of achieving an average annual growth rate of 18% during the period, with total revenue surpassing VND40 trillion (US$1.8 billion) and profit being in the range of VND9 trillion (US$409 million) by 2020.
As part of its multi-sector investment strategy, VRG also operates in hydropower and cement production, as well as construction, and banking.
