Da Nang port to launch IPO in June
Da Nang port to launch IPO in June
The Port of Da Nang, the largest in central Viet Nam, will sell over 8.3 million shares in its initial public offering (IPO) in Ha Noi on June 11.
According to the organiser Hanoi Stock Exchange, the number of shares to be offered accounts for 12.57 per cent of the charter capital of the port. Each share is being offered at VND11,400 (US$0.54).
According to the port, until September 2013, the actual value of the state capital in the port was VND654.5billion ($31.16 million). According to the equitisation plan, the charter capital after the IPO of the port will be VND660 billion ($31.42 million), equivalent to 66 million shares, of which 75 per cent is expected to be state holdings.
The port's business results are reportedly good. Its revenue and profit after tax have grown in the last three years (2011-13). Accordingly, the revenue increased from VND307.9 billion to VND446.5 billion ($14.6million-21.2million) and the profit after tax rose from VND8.6 billion to VND44.9 billion ($409,000-2.1million), while the rate of return on equity also increased from 3.8 to 12.36 per cent in these last three years.
The port was established in 1976, and it has operated as a limited company under the ownership of the Vietnam National Shipping Lines (Vinalines) since 2008.
With the two terminals of Tien Sa Port and Han River Port, Da Nang Port has a berth that stretches 1,493 meters, with the capacity to receive vessels of up to 45,000 tonnes. The port also has a convenient transportation system that connects with the airport and railway station.
With the advantage of geographic location, such as staying in the bay, covered by the Hai Van Pass and Son Tra peninsula and protected by the dyke system, Da Nang Port has been a perfect dock for boats and cargo throughout the year.
According to Viet Nam's seaport system development plan through to 2020, Da Nang Port has been confirmed as a major commercial port in the region, making it one of the key gateways to the East Sea from the Sub-Mekong Region. It serves cargo communication and encourages economic development and tourism of the provinces of Central Viet Nam, the Western Highlands of Viet Nam and Southern Laos, Northeast of Thailand, through the East-West Economic Corridor.
The national development plan also ranks Da Nang Port with a grade 1 port that is not only recognised at the national level but also acts as a regional hub and international gateway in the central region of Viet Nam.
Last April, the prime minister pushed for the privatisation of the country's major ports, including Hai Phong, Sai Gon, Quang Ninh, and Da Nang ports, with a directive that 25 per cent of the state's holdings in these ports should be made available to the public through IPOs, adding that it must be implemented within the year 2014. This is aimed at diversifying investment resources for the development of ports.
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