Investors to buy 90% shares in VAEM's IPO
Investors to buy 90% shares in VAEM's IPO
Investors have registered to buy 149.5 million shares of the Vietnam Engine and Agricultural Machinery Corporation (VAEM).
This is equal to 89.5 per cent of the shares offered in its initial public offering next Monday, the Hanoi Stock Exchange said.
It is expected to be the largest IPO in Viet Nam this year, with the minimum value surpassing VND2.3 trillion (US$103 million).
The machinery producer will auction more than 167 million shares, or 12.6 per cent of its charter capital. The starting price is set at VND14,290 per share.Foreign investors are allowed to buy all the shares on offer.
To date, 240 investors have registered to participate in the IPO, with 15 institutions having booked 132.1 million shares and 225 individuals having registered nearly 17.4 million shares.
After the sale, the company's charter capital will increase to nearly VND13.3 trillion. Accordingly, the state will continue to hold the largest stake of 51 per cent, while 36 per cent will go to strategic investors, and the company's staff will be offered 0.43 per cent.
The rest will be sold at the company's IPO on the Hanoi Stock Exchange next Monday.
VAEM is among the top five performers under the industry and trade ministry, coming behind PetroVietnam, Vietnam Electricity (EVN), Saigon Beer-Alcohol-Beverage Joint Stock Company (Sabeco) and Petrolimex.
It currently holds large stakes in well-known car manufacturing firms in Viet Nam, including a 30-per-cent stake in Honda Vietnam, a 20-per-cent stake in Toyota Vietnam and a 25-per-cent stake in Ford Vietnam.
In 2015, the company reported a net profit of nearly VND3.4 trillion.
