Vietnam's largest insurance firm Bao Viet will offer an 18% stake to foreign investors while the state will retain 65.34% of ownership, the official Vietnam News Agency reported on Monday.
The Vietnam Insurance group, known as Bao Viet, will auction more than 59.4 million shares or 8.74% of the firm's total to the public and 0.7% to employees and the remaining 7.22% to strategic investors, the report said.
The Finance Ministry said the partial privatisation for Bao Viet has been approved but it did not disclose a date for the share auction, the report said.
Company officials could not immediately be reached for comment.
The Vietnam News Agency said Bao Viet group will have a registered capital of 6.8 trillion dong ($422 million).
Communist-ruled Vietnam limits foreign ownership at 49% in a non-bank listed company.
Last year, the Vietnam National Re-Insurance Corporation (VNR) and Bao Minh Insurance Corp. (BMI) became the country's first insurance sector firms to have listed shares on the over-the-counter Hanoi Securities Trading Center
Bao Viet Securities (BVS), a subsidiary of Bao Viet, also listed on the Hanoi exchange last December.
The securities firm is a new business of Bao Viet which has said it would diversify into banking, financial leasing, real estate and public health insurance.
Vietnam's insurance sector has grown rapidly in recent years in line with the economy, which is targeted to expand 8.5% this year after growth of more than 8% in 2005 and 2006.
Source: Reuters
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