Cooking oil giant raises $24m in IPO

Cooking oil giant raises $24m in IPO

Viet Nam Vegetable Oils Industry Corporation (Vocarimex) raised more than VND500 billion (US$23.6 million) from its initial public offering yesterday with 37.9 million shares sold.

This was a successful IPO of a State-owned enterprise (SOE) after a large number of shares of many SOEs had failed to attract buyers at their IPOs recently.

Vocarimex fetched between VND13,000 (US$0.61) and VND30,000 ($1.4) a share, averaging VND13,428 ($0.63) a share, which was 19 per cent higher than its initial price, by 42 individual and five institutional investors.

Notably, investors registered to buy up to 84.4 million shares, 2.2 times higher than the offer volume.

After the IPO, Vocarimex's charter capital would be at VND1.218 trillion ($57.4 million) with the State holdings of 36 per cent.

The company also planned to sell 39 million shares, accounting for 32 per cent of its charter capital, to two strategic partners which were Kinh Do Corporation (24 per cent) and VPBank Securities (8 per cent).

Vocarimex currently dominates the Viet Nam's cooking oil market with holdings in leading cooking oil companies, including Tuong An, Tan Binh and Cai Lan vegetable oil companies, which all together account for 85 per cent of the local market, according to Vietcombank Securities.

bizhub