Vietnamese state-owned builder Vietnam Construction Investment and Export-Import Corporation (Constrexim Holdings) plans to sell 15 to 20% of its capital in an IPO by year-end, its chairman said on Sunday. Constrexim, one of Vietnam's top 10 building groups, hopes to raise $5 million to $8 million and would have a market capitalisation of less than $50 million after listing, Constrexim chairman Do Manh Vu told Reuters on the sidelines of the World Economic Forum in Singapore.
Vu, 53, added that the company also wants to list in Singapore in a few years and that it is setting up a subsidiary in the city-state to prepare for the listing. He said that Constrexim -- whose activities include construction, real estate development and manufacturing of building materials -- has considerable "hidden assets" that he said could be worth 10 times more than indicated in the company's books.
"The state prohibits us from accounting for our real estate as company property, as all land belongs to the state," he said.
Do said that despite intense competition in Vietnam's construction sector, the firm's sales were up 15 to 20% compared to last year. The firm employs about 1,000 permanent staff and about 7,000 contract employees and has more than 30 subsidiaries.
He said that the Vietnamese government owns about 58% of the company and that the Asia Commercial Bank (ACB), one of two listed Vietnam banks, owns 6%. ACB is listed on the Hanoi stock exchange and is Vietnam's fifth-largest by assets.
"Constrexim is one of the most powerful corporations in the country, with a long history and a strong customer base," ACB Head of Strategic Planning Dam Van Tuan told Reuters.
Source: Reuters
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