Nine SOEs in HCMC to launch IPOs in Q3
Nine SOEs in HCMC to launch IPOs in Q3
Nine State-owned enterprises (SOEs) in HCMC will launch their initial public offerings (IPO) between now and the end of September, according to equitization plans approved by the city government.
Ben Thanh Housing Development Co. Ltd. will hold its IPO at the end of July while Transportation and Public Works Co. Ltd, Medical Biomaterial & Pharmaceutical Co. Ltd, Saigon Forestry Import Export Co. Ltd, HCMC Ferry Bridge Construction Co. Ltd, Saigon Transport Projects Co. Ltd and Vinh Loc Industrial Park Co. Ltd will go public in the third quarter of this year.
The city government looks set to equitize 21 SOEs this year. Local SOEs will have to withdraw State capital totaling some VND3.6 trillion (US$165.4 million) from non-core business sectors in 2015.
As of the end of the second quarter, 10 out of 14 businesses have divested a total of nearly VND840 billion from 43 non-core businesses in banking, finance, insurance, securities and real estate.
The city government said as the local economy was still grappling with difficulties, local firms had not been able to pull State capital out of non-core sectors. They have found it hard to look for partners.
Capital divestments on the stock market have remained slow as the market has remained lackluster. Big supplies of new shares have affected local SOEs’ plans to divest capital.
SOEs in HCMC obtained total revenue of nearly VND78 trillion and profit of over VND8.53 trillion last year. Their respective targets are some VND82.77 trillion and around VND7.74 trillion this year.
