Vinafor to launch IPO on April 21
Việt Nam Forest Corporate (Vinafor) will offer 24.5 million shares or a seven per cent stake at an initial public offering on April 21.
The state-owned corporation, which is based in Hà Nội, has also chosen multi-industry investment firm T&T Group as a strategic shareholder. The shares will be auctioned on the Hà Nội Stock Exchange at a starting price of VNĐ10,100 (US$0.45) each.
After equitisation, Vinafor will have charter capital of VNĐ3.5 trillion, corresponding to 350 million shares. The state still holds a 51 per cent stake, while IPO investors have seven per cent and staff employees have two per cent.
Established in 1995 following the merger of 10 state-owned corporations, Vinafor is involved in planting, forest protection and forest product processing in the country. It is also involved in office leasing services. In 2015, its sales reached VNĐ1.2 trillion, an increase of 15 per cent over 2014. It also reported after-tax profit of VNĐ159 billion.
After equitisation, Vinafor has only 14 subordinate units, 13 subsidiaries and 29 associated companies.
It carries out its business in 12 cities and provinces with a land fund of 43,450ha, including good business locations in Hà Nội, HCM City, Hải Phing and Binh Định Province.
Vinafor has been constructing high-rise apartments in the capital's Hà Đong District and an office building in Quy Nhơn City in Binh Đijnh Province. The two constructions will be completed in 2016 and 2017.
Vinafor earned VNĐ179 billion in dividend in 2015 from its subsidiaries and associated companies.
Yamaha Motor Việt Nam was founded in 1998 as a joint venture of Vinafor, with a 30 per cent stake, Yamaha Motor Japan and Hong Leong Malaysia. This investment is worth VNĐ1.12 trillion now.
As one of the major motorbike distributors in Việt Nam, Yamaha Motor Việt Nam has achieved good business results. It reportedly earned VNĐ18.5 trillion in revenue and after-tax profit of VNĐ648 billion in 2014.
At the end of 2015, while determining the enterprise's valuation for equitisation, Vinafor valued its stake in Yamaha of VNĐ916 billion.. This investment alone accounted for one-fourth of the total value of Vinafor. The value was only based on the book value, actual valuation of the 30 per cent stake in Yamaha would undoubtedly be much higher, according to securities expert.
As the strategic investor, the T&T Group will purchase 140 million shares or a 40 per cent stake after the IPO at a price not lower than the IPO's prices.
Currently, the T&T Group is a strategic shareholder of Transport Hospital and Vegetexco.