120-year-old liquor company to debut shares
120-year-old liquor company to debut shares
Ha Noi Liquor Joint Stock Company (Halico) will start its first trading day on the Unlisted Public Company Market on June 8, Ha Noi Stock Exchange announced.
Halico will trade 20 million shares, equivalent to a charter capital of VND200 billion (US$8.8 million), under the code HNR.
The reference price is set at VND31,900 ($1.40) per share, which is only one-seventh of the price that the world’s largest spirit company, Diageo, paid to acquire 45 per cent stake at Halico in 2011.
Ha Noi Liquor JSC, formerly Ha Noi Liquor Factory, was established by French Fontaine Liquor Co in 1898. It was the largest liquor factory in Southeast Asia at that time.
Despite possessing several well-known brands, such as Vodka Ha Noi, Lua Moi and Bluebird, Halico has continuously reported losses since 2015.
In 2016, it reported net sales of nearly VND270.6 billion but registered a loss of VND20.2 billion.
In 2017, its net sales halved to VND125.4 billion but the loss increased by four times to VND84.5 billion.
By the end of last year, the company’s total assets shrank to VND658 billion, with total liabilities of VND98 billion and cumulative losses of nearly VND255 billion.
Halico has again projected losses in the next two years---VND58 billion in 2018 and VND53 billion in 2019.
Due to its prolonged losses, Halico has not paid dividends for many years.
As of March 19, 2018, the company has two major shareholders, of which Ha Noi Beer and Alcohol Beverage Corp (Habeco) owns 44.29 per cent and Diageo’s Streetcar Investments Holdings Pte holds 45.57 per cent.
The listing is part of Habeco’s plan to divest Halico due to its bleak business results.
However, despite its continuous losses, Halico remains attractive to investors as the company possesses a large land fund of up to 233,709sq.m, with many prime locations in Ha Noi.
