The Vietnamese government said on Wednesday it has annulled the sale of shares in state-run retailer and exporter Intimex and is investigating whether securities laws were violated.
It is the first reported crackdown on share sales as the communist country speeds up its privatisation plan, which has fuelled one of the world's fastest growing stock markets.
Deputy Prime Minister Nguyen Sinh Hung ordered the Trade Ministry to void the auction of its subsidiary Intimex, which operates supermarket and exports coffee and pepper, a statement on the government's Web site (http://www.chinhphu.vn/) said.
The statement quoted Hung as saying reports from Trade and Finance ministry officials and the police showed Intimex Import Export Corp had violated the Securities Law by publishing distorted financial information and conducting insider trading.
Company officials could not be reached for comment.
On April 12, Intimex sold all 1,682,800 shares on offer, or 33.66 percent of the company, to several domestic investors in an initial public offering, raising 269.3 billion dong ($16.7 million).
The shares were sold at an average price of 160,025 dong ($9.9), way above the 10,200-dong opening price for bids, valuing the company at $49.65 million -- nearly twice the book value of $27.2 million Intimex had assessed.
The large gap -- together with the small number of winning bidders -- raised suspicion among other investors who said the company had undervalued its assets and withheld information, which was then used by a small group of bidders.
Intimex runs a number of supermarkets in Hanoi and the north but is known abroad as an exporter of robusta coffee and pepper. Vietnam is the world's top exporter of the two commodities.
Vietnam has been speeding up privatisations to boost the stock markets and raise funds to fuel the economic growth targeted at 8.5 percent this year.
Source: Reuters
Showing posts with label Intimex. Show all posts
Showing posts with label Intimex. Show all posts
Thursday, August 02, 2007
Monday, May 21, 2007
Vietnamese retail market takes up “chain” system
Viet Nam’s retail industry is in for changing as goods distributors adopt the “chain store” system, a move that will strongly develop in the future, according to the Trade Ministry.
The Viet Nam Garment and Textile Corporation has already established its chain of 17 fashion supermarkets and shops trademarked Vinatex and Intimex Import-Export Corporation has set up a chain of eight Intimex supermarkets in big cities.
The development of supermarket chain which will help Vietnamese businesses better compete with world retailers, is predicted to be a trend of development in Viet Nam.
Many enterprises are planning to form and develop their own chain systems under the mode of franchise, including the G7 Trade and Service Joint Stock Co. with G7 Mart system, the Hoang Corp. with 24-Seven system and the Pham Trang Co. Ltd with Small Mart 24h/7 system.
The ministry said that alliances are formed from a combination of businesses’ strengths of capital, land, management experiences and trademarks. The coalition will change the face of the domestic distribution market in line with the regional and world development trend.
Source: VNA
Friday, May 04, 2007
Bourse suspends trading of Intimex shares
The Ha Noi Securities Trading Centre has suspended trading of Intimex shares and has announced that it will audit the results of the retail distributor’s intitial public offering last month.
The suspension is pursuant to an order from the Ministry of Trade, the centre said, in order to give the centre time to clarify some irregularities that appear to have occurred in the share auction.
On April 12, Intimex made an IPO on the Ha Noi bourse of 1.6 million shares, with an offering price of VND10,200 each. At the close of trading, bids had risen to VND160,000 (US$10), 16 times higher than face value.
Of note, according to the centre, is that the winning bids came from 11 investors, all Vietnamese, who each placed an exact order for 1.6 million shares at VND160,000.
Financial statements issued by Intimex prior to the IPO suggested the shares were overpriced. During 2004-06 period, the ratio of gross profits to capital fell markedly, a trend that would normally make investors wary.
Furthermore, in the third quarter of last year, Intimex posted losses of VND8.3 billion ($518,750) and carried a debt load of VND312 billion ($19.5 million).
Some market experts suggested that the total value of land use rights the company holds were a countervailing factor driving up the price of shares during the IPO.
At present, Intimex owes 19 parcels of land across the country with a total area of 2.3 million sq.m, including a valuable area of 2,871 sq.m near Ha Noi’s Hoan Kiem Lake, one of three lots in
Ha Noi issued to Intimex under decision of the Ha Noi’s People Committee.
Other irregularities in the IPO include Intimex’s failure to publish a list of shares would be held by the company’s top executives following the IPO.
One expert suggested that the failure to disclose indicated a plan by these major investors to hold onto a controlling interest, excluding outside investors and winning all the shares in the auction.
Under Government regulations, employees of a company are entitled to purchase shares at 60% of market cost when the company equitises. However, the share prices were pushed so high that few staff within the company could afford to buy, even at the discounted price.
All of these ambiguities would be clarified soon, promised Minister of Trade Truong Dinh Tuyen.
Last Tuesday, prior to the suspension of trading, Intimex issued additional shares to raise its charter capital from VND14.4 billion ($900 million) to VND28.8 billion ($1.8 billion). 94% of the 1.4 million new shares were earmarked for existing shareholders at a face value of VND10,000 each.
Source: VNS
The suspension is pursuant to an order from the Ministry of Trade, the centre said, in order to give the centre time to clarify some irregularities that appear to have occurred in the share auction.
On April 12, Intimex made an IPO on the Ha Noi bourse of 1.6 million shares, with an offering price of VND10,200 each. At the close of trading, bids had risen to VND160,000 (US$10), 16 times higher than face value.
Of note, according to the centre, is that the winning bids came from 11 investors, all Vietnamese, who each placed an exact order for 1.6 million shares at VND160,000.
Financial statements issued by Intimex prior to the IPO suggested the shares were overpriced. During 2004-06 period, the ratio of gross profits to capital fell markedly, a trend that would normally make investors wary.
Furthermore, in the third quarter of last year, Intimex posted losses of VND8.3 billion ($518,750) and carried a debt load of VND312 billion ($19.5 million).
Some market experts suggested that the total value of land use rights the company holds were a countervailing factor driving up the price of shares during the IPO.
At present, Intimex owes 19 parcels of land across the country with a total area of 2.3 million sq.m, including a valuable area of 2,871 sq.m near Ha Noi’s Hoan Kiem Lake, one of three lots in
Ha Noi issued to Intimex under decision of the Ha Noi’s People Committee.
Other irregularities in the IPO include Intimex’s failure to publish a list of shares would be held by the company’s top executives following the IPO.
One expert suggested that the failure to disclose indicated a plan by these major investors to hold onto a controlling interest, excluding outside investors and winning all the shares in the auction.
Under Government regulations, employees of a company are entitled to purchase shares at 60% of market cost when the company equitises. However, the share prices were pushed so high that few staff within the company could afford to buy, even at the discounted price.
All of these ambiguities would be clarified soon, promised Minister of Trade Truong Dinh Tuyen.
Last Tuesday, prior to the suspension of trading, Intimex issued additional shares to raise its charter capital from VND14.4 billion ($900 million) to VND28.8 billion ($1.8 billion). 94% of the 1.4 million new shares were earmarked for existing shareholders at a face value of VND10,000 each.
Source: VNS
Saturday, April 14, 2007
Retailer Intimex offered equity to public
A small Vietnamese supermarket operator, which is also a leading exporter of robusta coffee and pepper, raised 269.3 billion dong ($16.7 million) by selling 33.66% of its shares to the public, the stock market said on Friday.
Intimex Import-Export Corporation sold all 1,682,800 shares on offer to domestic investors in the IPO on Thursday, the over-the-counter Hanoi stock market said in a statement. It did not disclose the identities of buyers.
The shares were sold at an average price of 160,025 dong ($9.93), way above the 10,200-dong initial price set for bids, suggesting the firm was valued at $49.65 million, or nearly twice the book value of $27.2 million in its own assessment.
Hanoi-based Intimex did not say when it planned to list its shares or how the proceeds would be invested.
Employees in the company, which is controlled by the Trade Ministry and 45% owned by the state, hold a 21.34% stake.
The company has been running a number of supermarkets in Hanoi and several northern locations since 2001. But Intimex is known more abroad as the exporter of robusta coffee and pepper. Vietnam is the world's top exporter of the two commodities.
Intimex has projected its gross profit next year to rise 16.7% to 6.08 billion dong ($377,300) from 5.21 billion dong expected this year.
Intimex Import-Export Corporation sold all 1,682,800 shares on offer to domestic investors in the IPO on Thursday, the over-the-counter Hanoi stock market said in a statement. It did not disclose the identities of buyers.
The shares were sold at an average price of 160,025 dong ($9.93), way above the 10,200-dong initial price set for bids, suggesting the firm was valued at $49.65 million, or nearly twice the book value of $27.2 million in its own assessment.
Hanoi-based Intimex did not say when it planned to list its shares or how the proceeds would be invested.
Employees in the company, which is controlled by the Trade Ministry and 45% owned by the state, hold a 21.34% stake.
The company has been running a number of supermarkets in Hanoi and several northern locations since 2001. But Intimex is known more abroad as the exporter of robusta coffee and pepper. Vietnam is the world's top exporter of the two commodities.
Intimex has projected its gross profit next year to rise 16.7% to 6.08 billion dong ($377,300) from 5.21 billion dong expected this year.
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