Vietnam's top re-insurer, National Re-Insurance Corporation (Vinare), said on Thursday it would sell 12.58 million new shares at an auction on Aug. 24 to raise at least $46.8 million.
The auction held on the over-the-counter Hanoi stock market <.HASTCI> is part of Vinare's plan to issue 40.7 million new shares this year, to more than double its registered capital to 750 billion dong from the current 343 billion dong and to expand its businesses.
A statement from the Hanoi-based company said bidding for the 12.58 million shares would start at 60,000 dong ($3.7).
Vinare chairman Trinh Quang Tuyen said in May the firm needed to invest 1.6 trillion dong ($100 million) in several projects, including the formation of new banks together with top insurer Bao Viet and Vietnam's leading IT firm FPT.
Vinare also plans to spend 200 billion dong to increase its stake in five domestic insurance firms and a joint venture late this year or early 2008, and another 200 billion dong on the formation of non-life insurance firms in 2007 and 2008.
Of the 40.7 million new shares, 27.95 million will go to the public, existing shareholders and employees. Another 12.75 million shares would be sold to Vietnamese and foreign strategic investors.
Shares in Vinare lost 1.2 percent to close at 82,000 dong ($5) on Thursday, valuing the firm at $172 million.
Vietnam's insurance sector has grown rapidly in recent years as the country's economy has boomed. Growth is expected to top 8 percent for the third year running this year.
Vinare, which used to provide the sole access to international re-insurance for Vietnamese insurers, still maintains a leading role in the sector.
Source: Reuters
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment