Vincom to float in $600 mln listing

Vietnam property developer Vincom (VIC) will float all of its 80 million shares on Ho Chi Minh Stock Exchange next week in $600 million stock market listing, the company said on Tuesday.

The Hanoi-based company will float the shares at starting price of 119,000 dong ($7.4), similar to the average price Vincom shares were sold to retail investors at an auction of five million shares in July this year, traders said.

The shares are allowed to rise or fall by a 20 percent margin from the listing price on the first day of trading, according to stock market rules.

Vincom, which owns an office and shopping complex in Hanoi and a five-star resort in Nha Trang, forecast its next year net profit will rise 9 percent to $8.6 million from the previous year thanks to to strong demand for property.

It forecast an 11 percent rise in sales to $15.2 million, taking its return on equity to 17 percent from 16 percent this year.

Vincom forecast 2009 net profit to soar 700 percent to $71 million from 2008, as it completes the sale of several apartment buildings.

In June the Ho Chi Minh City municipal government granted Vincom 8,000 square metres (86,110 sq ft) of land in the District 1 commercial centre for a $250-million shopping mall and office building.

The company is also branching out into the energy sector and financial services and has plans to set up an investment fund and a brokerage with state-run Vietindebank.

Source: Reuters

HCMC to sell 500 bln dong in urban bonds

An investment fund in Vietnam's Ho Chi Minh City will raise a combined 500 billion dong ($31 million) by auctioning three types of urban bonds later this week, the Hanoi's stock exchange said on Monday.

The Ho Chi Minh City Investment Fund for Urban Development Project told the exchange that it would auction on Thursday a 150 billion-dong bond with maturity on Aug. 29, 2012 and a 200 billion-dong bond for maturity on Aug. 20, 2017.

A third bond to be auctioned on the same day would raise 150 billion dong for maturity on Aug. 20, 2022.

In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debts.

Source: Reuters

VNECO sets Aug 9 share debut

Vietnam Electricity Construction Corporation (Vneco) will make its debut on the Ho Chi Minh Stock Exchange <.VNI> next week, chief executive Doan Duc Hong said on Thursday.
Vneco, which will become the market's 111th listed firm, would list all its 32 million shares on Aug. 9 at a starting price of 65,000 dong ($4), valuing the firm at $128 million, he said in a statement.
Based in the central city of Danang, Vneco builds electricity distribution networks, airports and sea ports, trades steel products and real estate and runs tours and hotels.

"The corporation is now speeding investment in hydro-power plants, infrastructure and housing projects, dealing with real estate and invests in tourism and services," Vneco said on its Web site (http://www.vneco.vn/).
Vietnam plans to double power generation capacity to about 28,000 megawatt by 2010 to meet forecast annual demand growth of about 20 percent as the economy continues to expand rapidly at a forecast range of 8.5 percent and 9 percent per year.
The communist government plans to build 60 additional power plants by 2020.
Construction accounted for 77.6 percent of Vneco's revenues in 2006, up from 73 percent in 2005.
Vneco said its net profit soared 317 percent last year from 2005 to 66.72 billion dong ($4 million) as revenues jumped 91 percent to 877.33 billion dong ($54.3 million).
The Ho Chi Minh Stock Exchange's VN Index rose 1.67 percent to 923.14 points on Wednesday, when its market capitalisation was $12.6 billion.

Source: Reuters

Sudico to raise $87 mln through share issue

Vietnam’s leading construction group Sudico is expected to raise at least VND60 billion (US$87 million) through an auction of six million shares next month to raise funds for property projects. Sudico, formally known as Song Da Urban and Industrial Zone Investment and Development Company, has set a reserve price of VND235,000 ($14.5) for the auction on August 10 at the Ho Chi Minh City Securities Trading Center.

The HCMC-listed Sudico (SJS) closed up 3.7 percent Tuesday at VND280,000.

The Hanoi-based company had a chartered capital of VND200 billion ($12.4 million) as of March 12.

Of this figure the state holds 51 percent, its staff 5.21 percent, and outsiders 43.79 percent [including 19.11 percent by foreign investors].

Over 95 percent of the company’s revenues come from construction of apartments and urban areas.

This year it has projected a turnover of VND606 billion ($37.9 million) and profits of VND262 billion ($16.4 million).

The builder earned its revenue of VND351.5 billion ($22 million) last year and more than VND142 billion ($8.9 million) in net profits. The company paid shareholders a dividend of 20 per cent last year.

It has planned to branch out into tourism and insurance services from the core business of construction and to set up new arms to manage its expanded projects nationwide this year.
Projects under construction

Sudico has invested nearly VND1.6 trillion in several mammoth projects in mainly the Northern provinces.

Top of the list is Tien Xuan - Hoa Binh Urban Zone at a total cost of VND1.9 trillion in the Hoa Binh province.

Work kicked off on the project in earlier this year and is expected to complete in 2016.
In the province the company is building Bac Residential Area in the Hoa Binh township, at a cost of VND148 billion investment. Works are set to complete in next March.

The second largest one is the New Urban South An Khanh project at a total capital of VND1.4 trillion in the Ha Tay province, some 30 km from the Hanoi capital.

Construction of the project on a 312 ha site is expected to complete in third quarter 2014. The end of the third quarter this year will see a part of the project coming online.

The 240 sq.m-project is designed to include villa groups and apartment buildings for sales.

The Song Da – Ngoc Vung Ecotourism Zone is under construction in the island Van Don district, Quang Ninh Province.

The 39ha-ecotourism project worth VND248 trillion is set to launch services in August next year.

Its four-star hotel and villa project in the province will come in full service in 2010.
The company is expected to put its VND287 billion-invested My Dinh – Me Tri Urban Area in the capital into full operation in the next two months.

Source: Thanh Nien

VNPT, Vinaconex ‘synergise’ strengths

Viet Nam Post and Telecommunications Group (VNPT) on July 12 signed a strategic partnership agreement with Viet Nam Construction and Import-Export Corp (Vinaconex), forming the country’s largest cooperation deal.

”This is a very notable partnership as it will synergise the strengths and resources from two of the country’s leading companies,” said Vinaconex’s CEO Nguyen Van Tuan.
The two giants committed to using each other’s products and services.

“Partnering with the country’s biggest contractor will help VNPT expand its coverage with our products and services being used at Vinaconex projects,” said VNPT Deputy General Director Nguyen Ba Thuoc.

As Vinaconex expands globally, VNPT will also have an opportunity to reach new markets, he added.

On the other side, Vinaconex will be awarded VNPT infrastructure development contracts.
Vinaconex predicts 2007 revenue will reach 6.5 trillion VND (406 million USD), up 16.4 percent over last year. Pre-tax profit is expected to increase 49.7 percent to 350 billion VND (22 million USD).

VNPT last year posted a revenue of 38.3 trillion VND (2.4 billion USD), up 14.9 percent compared to 2005 and 3.4 percent higher than the company’s initial forecast.

Source: VNA

Vincom raises $37 million in IPO

Vietnam property developer Vincom has raised $37 million from a maiden auction of 5 million shares, or 8.33 percent of the company, the Ho Chi Minh Stock Exchange said Wednesday.

The average winning price at the auction on Tuesday was 119,479 dong ($7.4), or 49 percent higher than Vincom's starting offer of 80,000 dong, the exchange said in a statement.
Foreign investors bought nearly 30,000 of the shares offered, the statement said.

Hanoi-based Vincom, which owns a large office and shopping complex in the capital and a five-star resort in the central city of Nha Trang, is now valued at about $444 million.
Vincom Chairman Le Khac Hiep has said the firm would float its shares on the Ho Chi Minh market next month.

Hiep said in June the firm had won permission from the Ho Chi Minh City government to build a $250 million office complex in the city's District 1 commercial center.

Despite fast economic growth of around 8 percent, Vietnam still suffers from a shortage of quality office buildings and commercial centers.

Vacancy rates at top office buildings in Hanoi and Ho Chi Minh City are at record lows and monthly rents have surged about 20 percent in the last two years to average $30-$35 per square meter, double the rates in Bangkok.

Vincom has forecast its net profit would rise 9 percent next year from 2007 to $8.6 million on revenues of $15.2 million due to strong property demand.

Source: Thanh Nien

Song Da 9 to raise 10mio US$

Vietnam construction firm Song Da 9 (SD9) said on Tuesday it would sell 4 million new shares by auction to raise about $10 million to purchase equipment and expand its business.

The company, which specalises in power plants and irrigation projects, said the auction would be held before September 18 and it would would issue 2.95 million shares to existing shareholders at 10,000 dong each ($0.62) next month.

The amount of money the firm sought to raise suggested it aimed to sell the shares at about 40,000 dong each ($2.5), traders said.

At 0230 GMT, shares in the company were traded on the Hanoi exchange at 72,000 dong ($4.5), down 0.55 percent from Monday.

Song Da 9 now has a price to earnings ratio of 21.20 and a return on equity of 30.89 percent.

Source: Reuters

Vietnam builder Constrexim says plans IPO

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

Itaco to invest $47 mln in engineering firms

Vietnam's Tan Tao Industrial Park Corp (Itaco) said on Wednesday it will invest $47 million for majority stakes in two engineering firms that focus on power plant construction and irrigation projects.

The group said in a statement published by the Ho Chi Minh Stock Exchange it would pay $32 million for a 51-percent stake in the Long An province-based ITA-Power and $15 million for a 50-percent stake in North-West Power JSC in Lai Chau province.

North-West Power JSC has already won a contract to build a 70-megawatt hydro power plant in Lai Chau, the group said.

Itaco, which is the first industrial park developer listed in Vietnam, has been operating the Tan Tao industrial park in Ho Chi Minh City, Vietnam's business centre, since 1997.

In addition to expansion into the energy sector, Itaco is also branching out into highway and residential property development and has two projects in the pipeline in the southern province of Long An worth a total $59 million.

Shares in Itaco closed unchanged on Wednesday at 141,000 dong ($8.75), valuing the company at $525 million.

Source: Thanh Nien

Steel price hike makes construction works suffer

The steel price saw the dizzy price increase of VND2mil/tonne in the last two months, putting contractors into a dilemma.

According to the Vietnam Steel Association (VSA), its members now sell steel at VND9-9.5mil/tonne (not including VAT). If counting on the 10% VAT, transportation fee, commission for sales agents, customers can purchase steel at VND10-10.5mil/tonne on average, while the price may reach VND11mil/tonne in remote areas.

Steel prices have been rising since mid April 2007. In the north, producers raised the price by VND200-300,000/tonne since the end of May. In the south, the price has been raised by VND150,000-200,000/tonne since the beginning of June.

The south saw the lower price increases compared to the north because the Southern Steel Corporation tried to keep the low selling prices in order to gain the yearly output plan. In the first months of the year, the sales were slow and the corporation tried to offer low prices in a bid to boost sales.

However, once the sales were improved (the corporation could sell 70,000 tonnes in May alone), it began raising the selling price by VND150,000/tonne of rolled steel and VND200,000/tonne of bar steel. The move has been followed by other producers.

The Southern Steel Corporation has announced it would raise the price by another VND200,000/tonne, and the new prices will be applied as of June 20. As such, the bar steel will be priced at VND9.65mil/tonne, while rolled steel is VND9.2mil/tonne.
Analysts said that the overly high ingot steel price has led to the material shortage for steel mills, and the output of finished steel is not enough to satisfy the market.

Le Ngoc Son, Head of the International Cooperation Division under VIS, said that the company has sold out the imported China-made 10,000 tonnes, bearing VIS trademark.

Mr Son said that VIS has not thought of importing more from China this way (ordering Chinese producers to make steel under the VIS trademark and then importing it to sell domestically). The Government of China has decided to remove the scheme on VAT refunds, while imposing 10% on steel exports, which makes China-made steel as expensive as the locally-made product.

Mr Son said that the steel price may increase to VND11mil/tonne due to the increased import price of ingot steel, while local steel mills still rely on ingot steel imports.

Contractors of construction works are weeping over the price hike. Luong Sy Nhung, Director General of the Truong Son Construction Corporation under the Ministry of National Defence, said that the sharp price increases in the last two months have put difficulties on construction projects.
“What worries us most is the material price hike,” Mr Nhung said.

As for some construction works, expenses are fixed and contractors do not have the right to adjust the expenses when the material prices fluctuate. In this case, contractors have to incur losses due to the price hike.

In other works, contractors can adjust the expenses when the material prices fluctuate.

However, contractors still have to pay expenses on account and then ask for the payment from projects’ investors. Mr Nhung said that the complicated procedures for the payment always makes contractors exhausted. In most cases, contractors incur losses from price fluctuations as steel accounts for 25% of total expenses in construction works.

Nghiem Sy Minh, Director General of the Hanoi Construction Corporation, said that the construction pace will slow down as contractors will have to negotiate with investors on the adjustment of expenses.

Source: VNE

Real estate firm Cholonres to list on June 14

Vietnam's Cho Lon Real Estate Company will float its shares on the Hanoi stock market next month, making it the 87th stock to trade on the over-the-counter market, a company executive said on Wednesday.

The Ho Chi Minh City-based company, also known as Cholonres, will list all its 1.5 million shares on June 14, chairman Tran Van Chau said in a statement.

Shares of Cholonres were traded at between 90,000 and 92,000 dong ($5.59-$5.71) late last month on the unofficial, unregulated markets, which valued the firm at up to $8.6 million.
The company builds residential houses and public projects.

The construction industry, along with the industrial and service sectors, are key drivers of Vietnam's economy, one of the world's fastest growing.

Cholonres' debut on the Hanoi stock market would be the first in Vietnam so far this year after a wave of new listings on the country's two exchanges late last year as companies rushed before a government tax relief for listed firms expired on Dec. 31.

Source: Reuters

Dragoncapital wins auction

British fund manager Dragon Capital won most shares in the auction earlier this week of HCMC-based Cotec Construction Joint Stock Company, or Coteccons, at a price 22 times higher than face value, according to the market regulator.

Coteccons auctioned its 9.11% stake of the state, or 54,200 shares at a face value of VND100,000 each on the HCMC bourse.

The fund manager bought more than 53,000 shares at VND2.2 million each while an individual investor claimed 1,000 shares at VND2.3 million per stock.

The auction attracted 20 institutions and 174 individuals registering to buy 332,000 shares – which were oversubscribed by six times.

After the auction the state still holds a 10% stake of the firm, while 60% is held by staff, and the balance by outsiders.

Coteccons plans to increase its chartered capital to VND120 billion this year from the current VND59.5 billion and to VND500 billion by 2010.

It also expects to list on the stock market this year.

The company is cooperating with partners to implement two projects, namely VND800 billion residential buildings in Saigon South and the VND1.5 trillion complex of a trade complex near the Tan Son Nhat International Airport.

Dragon Capital Group is an investment banking institution with an exclusive focus on Vietnam’s capital markets. Established in 1994, the group is now the largest and most experienced asset manager in Vietnam with total group assets in excess of US$2 billion.

Source: Thanh Nien

Construction material prices rising

Construction material producers all are planning to raise their selling prices to cover the higher input material prices.

Pham Chi Cuong, Chairman of the Vietnam Steel Association (VSA), said that the steel price keeps high, though the offered ingot steel has slightly decreased in the last couple of weeks. Explaining this, Mr Cuong said that steel mills now still use the ingot steel imported at high prices in the first quarter of the year.

In the north, round steel of the Thai Nguyen Cast Iron and Steel Company is selling at VND9,100/kg, while joint venture steel companies are offering at VND9,200/kg. In the south, the Southern Steel Corporation is selling round steel at VND9,150/kg, rolled steel at VND8,850/kg, while VinaKyoei at VND9,220/kg, and VND9,030/kg respectively.

The cement price has also been sharply increasing. In April, the sold volume of cement reached 3.5mil tones, according to the Vietnam Cement Association, raising the total consumed volume of cement in the first four months of the year to 11.18mil tones. The cement price stays at VND770,000-835,000/tonne in the north, and VND880,000-1mil/tonne in the south.
However, the prices of these products are bound to increase as the input material prices (coal, electricity, petrol) have increased.

Nguyen Van Nam, Director General of the Hoang Thach Cement Company, said that the higher input material prices have made the cement production cost increase by VND25-30,000/tonne. Meanwhile, the recent petrol price hike, which has caused the higher transport fee, has also put difficulties for cement producers. Hoang Thach’s cement is now selling at VND720,000/tonne (PCV 30) and VND750,000/tonne (PCV 40).

As the input material prices have increased in the last time, the HCM City People’s Committee has recently made the decision on allowing local enterprises to adjust the selling prices of steel and cement spontaneously. Local enterprises would be allowed to lower or raise the prices by 5% compared to the price levels announced by the HCM City Departments of Construction and Finance.

According to Mr Cuong from VSA, the ingot steel in stock by the end of April has reached 300,000 tonnes, enough to meet the demand for the production in May and June. The inventory finished steel is reportedly at 260,000 tonnes.

Experts said that the fact that China removes the scheme on 8% VAT refund to exporters would limit the exports of finished steel products to Vietnam. Less China-made steel would be imported to Vietnam as the product would be $35/tonne more expensive. As China-made steel would not be a big rival any more, local steel producers would be free raise the selling prices, which they have planned for a long time.

As for cement, though the inventory cement and clinker remain high at 2.1mil tones, and producers have promised to provide enough cement for the last months of the second quarter, the Taskforce on Domestic Market Monitoring has predicted that the cement price would increase in the second quarter.

According to the Vietnam Cement Corporation, the demand for cement would increase in the second quarter, the high construction season, estimated to reach 10-11mil tones. However, cement would not see sharp price increase as more cement plants will become operational in the time to come, ensuring the profuse supplies to the market.

Source: VNE

Cost of steel, building materials rises

The price of construction steel this month is 500,000-700,000 VND (30-43 US%) per tonne higher than in the same period last year, according to Dinh Huy Tam, secretary of the Viet Nam Steel Association.

Prices for different varieties of construction steel were currently running from about 8.55 million VND (534 US%) to 9.1million VND (568 US$) per tonne, Tam said, with prices in HCM City generally running higher than elsewhere in the nation.

One-tonne wire rods sold by Vina Kyoei in HCM City were currently priced at 8.78 million VND (548 US$).

A steel trader in HCM City predicted that the price of construction steel would continue to increase this month and prices by the end of March would exceed 10 million VND per tonne.

The leading cause for the climbing steel prices were the high cost of steel ingot imported from China, a major raw material in steel production.

"About 70% of our imported ingot is from China," said Tam. "So, when China changes its policy on ingot exports, we will be affected."

China recently increased the export tax on steel ingot from 10% to 15%, driving up prices by 500 US$ per tonne. Ingot from Russia and Japan was even more costly, at 530 US$ per tonne and 525-530 US$ per tonne, respectively.

Building costs in HCM City have been seeing a general increase, with the costs of other construction materials also going up. Cement prices have increased to 51-53,000 VND per package, a rise of about 12%. Construction brick has also gone up by 2%.

Hoang Quoc Tuan, deputy director of Dong Nai Brick and Tile Co, noted that, since the beginning of this year, his company has had to raise the prices of many types of construction materials by 3-5%.

Source: VNA

Constructions to increase by 70%

Enterprises under the Construction Ministry will implement 493 investment development projects capitalised at over 35.7 trillion VND (2.2 billion US$) in 2007, a 70% increase over 2006.
Investment will be focused on cement plants, housing and urban development, power plants, and infrastructure facilities for transport.
Among them, the Song Da Corporation will carry out hydro-power plant projects, the Machinery Installation Corporation (Lilama), thermal-power plants, the Viet Nam Construction and Import-Export Corporation (Vinaconex) and the House and Urban Development Corporation, cement plants and work in urban areas.

Source: VNA

Vinaconex publishes goals for 2007

The Viet Nam Construction and Import-Export Corporation (Vinaconex) yesterday announced a 6.5 trillion VND (406mio US$) revenue target for the year, up 16.4% compared to 2006.
The corporation based its growth estimates on ongoing and new property development projects and capacity expansion efforts in its construction materials businesses, according to CEO Nguyen Van Tuan.
Pre-tax profit is expected to rise 49.7% to 350 billion VND (22mio US$) in 2007, while

Vinaconex’s contribution to State coffers is forecasted at 210 billion VND (13mio US$).
To achieve growth targets, Vinaconex plans to speed up marketing efforts for cement produced at its Cam Pha and Yen Binh plants some time in the fourth quarter. Vinaconex will also resume the Ngoi Phat Irrigation Project in the second quarter, and plans to establish its own finance company to help mobilise investment capital.
Last year, the companies annual earnings jumped by nearly 17% on the back of record high exports. Total trade turnover was 78mio US$, of which 42.2mio US$ was from exports.

In 2006, Vinaconex completed it equitisation and construction on the National Conference Centre, both of which contributed to earnings growth. It also begun major transportation infrastructure projects like the Bai Chay Bridge.

The company is seeking co-investors in a 600mio US$, Cai Gia-Cat Ba urban-tourism complex, located in the northern port city of Hai Phong.
On its 172 hectares, the complex is set to be home to villas, hotels, and an entertainment districts built around the city’s hills and waterways. The developer also plans to build infrastructure to accommodate international conferences, marinas and shopping centres.
Executives want the complex to be the biggest modern ecological tourism centre in Viet Nam.
Vinaconex is currently discussing potential co-operation agreements with domestic and foreign investors, said Tran Ngoc Quang, director of the Cai Gia-Cat Ba project management board.
The company has already begun the first phase of the complex, the construction of a 10-hectare, 300mio US$ resort. The resort is scheduled to be complete in 2012.

Source: VNS

Vinaconex increases chartered capital

The Viet Nam Construction and Import-Export Joint Stock Corporation (Vinaconex JSC) expects to raise its chartered capital from 1.5 trillion VND (93mio US$) to VND2 trillion (124mio US$) in the first quarter of the year.

To meet the mark, the corporation will issue shares targeted at potential foreign partners specialising in cement, construction material production, real estate and finance. The State will retain 51 per cent of the firm. It now controls 64 per cent of shares, worth 960 billion VND (59.6mio US$)

Vinaconex JSC expects to reach 5 trillion VND (312.5mio US$) in chartered capital by 2010 through the issuance of shares.

Aside from equitisation, the company’s road map for growth will depend on stock trading and the demand for development.

Since the firm’s first share issuance, the stake of six strategic investors – which include domestic banks, investment funds and securities companies – has increased more than three fold to reach 33 million shares.

Source: VNS

Vietnamese cement production meets demand in 2010

The cement industry will fully meet the national demand by 2010 with supply expected to reach 60 million tonnes against 50 million tonnes for the national demand volume.

Experts voiced concerns over the fact that small projects are booming while strong investment has appeared to be very rare, making investment risky. They warned that a situation where a large number of businesses operate separately may lead to an unhealthy competition such as dumping products.

The industry has, therefore, called for a faster pace in equitising State-owned enterprises (SOEs) and setting up a national cement consortium with advanced technology and financially strong enough to compete in the international market.

The national demand for cement reached 32.5 million tonnes in 2006.

Source: VNA

Constrexim Holding plans to offer 6.4mio shares

Vietnam Investment Construction Export Import Holding Corp., which expects to raise about 70.4bio VND (4.4 mio US$) from the share sale on Dec. 26, will use the funds to develop real estate projects in Hanoi and industrial projects, including a hydropower plant, in the provinces..

The company, which has registered capital of 203bio VND, will sell 31.54% of its stake, via an OTC-auction. The shares will be offered to local and foreign investors at an initial price of VND11,000 each. Foreign investors can buy a maximum of 6.09 million shares or a 30% stake.
After the IPO, the state will own 57.82% of the equity, employees 2.2% and strategic investors 8.44%.

In 2005, the company, which is involved in a range of construction projects and services, reported a net profit of 21bio VND, a revenue of 1.7 trillion VND.

Source: Thanh Nien

Ha Tien Cement Co. No. 1 successfully offered shares

Ha Tien Cement Co. No. 1 sold all 22 mio state shares in a IPO and and raised $44 million from selling 25.62% of its stock. The pricing (average 31,800 VND/share) gave company an initial market value of $172 million after a sale in which 15 institutional and 165 individual investors sought to buy six times more shares than were on offer.

The construction industry, along with the industrial and service sectors, is a key driver of Vietnam's economy, the world's fastest growing after China.