Vinatex to launch IPO on July 22

Vinatex to launch IPO on July 22

The Vietnam National Textile and Garment Group (Vinatex) will launch an initial public offering (IPO) on the HCM City's Stock Exchange on July 22.

The statement was made by the head of the group's Market Department Tran Viet at a press conference on June 16.

According to a prime ministerial decision issued in May, Vinatex will sell a part of its shares to raise registered capital.

The group now has a registered capital of VND5 trillion or US$238.1 million, an equivalent to 500 million shares. After going public, the State, employees, strategic investors and the public will hold 51 per cent of the stake, 0.46 per cent, 24 per cent and 24.4 per cent, respectively.

Viet said while the import growth of textile and garment of key markets such as the United States, Europe, Japan and South Korea has not been high since early this year, Viet Nam's export to these markets has increased by 14.5 per cent, 11.3 per cent, 11.6 per cent and 30.1 per cent, respectively.

In the first six months of this year, Vinatex estimated to have earned an export turnover of US$1.62 billion, an increase of 15 per cent compared with the same period last year.

To push up IPO process, the group will focus on projects in the field of fibre, textile and garment in the trend of own design manufacturing, meeting the demands of Trans-Pacific Partnership Agreement.

In addition, the group will also carry out projects producing materials for the textile and garment sector, said Viet.

Vinatex has been building a chain of manufacturing fibre–textile–dying–garment for the group's member companies. Since early this year, Vinatex has carried out nine fibre projects, with a total capacity of 600 tonnes per month; 11 dying projects supplying 400 tonnes per month; and 12 garment projects producing 2 million products per month.

This has helped the group's localisation rate reach 60 per cent.

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