Vietnamese paper maker Saigon Paper Corp (SGC), which will launch its IPO next month, has forecast net profit this year should soar 115 percent from 2006 to $2.3 million due to strong demand and expanded capacity.
The company said in its prospectus seen on Monday 2007 revenues should jump 117 percent from last year to $28 million due to strong demand for tissue and napkins products and 50,000 tonnes of new capacity at two new plants in the south.
The Ho Chi Minh City-based company said it had set a starting price for its 3 million shares at an auction scheduled for July at 20,000 dong ($1.24), or double the stock's face value.
SGC, which has assets of $28 million, plans to invest about $1 million of the $3.7 million expected from the initial public offering in two new paper plants in Hung Yen province in the north and the central province of Quang Nam.
The firm, which makes tissue and toilet papers for domestic use and export to Africa, said it aimed to achieve a return-on-equity of 31.2 percent and pay a dividend of 15 percent this year.
Source: Reuters
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