Vinalines set to launch IPOs for five large port operators

VietNamNet Bridge – Viet Nam National Shipping Lines (Vinalines) has announced plans for initial public offerings (IPOs) for five more large port operators by the end of the year. Hai Phong Port has already been equitised.

IPOs, Vinalines, restructuring plan, Vinatex

However, experts predict it will be difficult for ports to find buyers at present.

According to Vinalines' restructuring plan, four ports, Cam Ranh, Nghe Tinh, Can Tho and Nam Can, will sell stakes by year-end.

Sai Gon Port will complete its equitisation plan at the same time.

The five ports have signed contracts with consultants for the upcoming IPOs. Meanwhile, Nghe Tinh Port has completed the company's valuation and submitted the document to Vinalines.

Vinalines plans to privatise 10 businesses as part of the group's wide restructuring arrangement. Five were finalised last year.

Along with the parent company, Vinalines also hopes to equitise three subsidiaries, Vinalines Hai Phong, Vinalines Shipping Company and Vinalines Container Shipping Company.

The state-owned shipbuilder posted losses for four consecutive years. It is likely to witness another year of failure as it incurred losses in the first half of this year and is forecast to lose more than VND1 trillion (US$47.4 million) for the whole year.

The group is also facing the huge task of repaying VND11 trillion ($523.8 million) to 24 creditors, nearly half of whom are foreign agencies.

Equitisation, capital divestment and winding up loss-making companies are viewed as the remedy for Vinalines to pay debts and revive its business.

However, the group is meeting difficulties finding investors. Recent IPOs of Quang Ninh Port, Hai Phong Port, Da Nang Port and Nha Trang Port did not attract many potential buyers.

Nha Trang Port and Quang Ninh Port sold about six to seven per cent of their total sales. Da Nang Port had better performance with a sale of 1.6 million shares, or 19.6 per cent of a total of 8.3 million shares put up for sale. Hai Phong Port sold more than 17.6 million shares, or 47 per cent of a total of 37.6 million shares.

"I don't think our ports are too bad," said Nguyen Van Cong, Deputy Minister of the Ministry of Transport.

In IPOs, only 25 per cent to total capital would be put on sale.

The State still held major stakes in the equitised companies after sales and this fact did not appeal to investors, Cong said.

Meanwhile, seaport operators listing shares on the HCM Stock Exchange have better business results.

Viet Nam Container Shipping Corp (VSC) announced its revenue rose 18 per cent and the pre-tax profit was up five per cent in the first quarter of the year. Saigon Securities Inc (SSI) forecast VSC's revenue and net profit could increase 10.3 per cent and 11.3 per cent year-on-year, respectively.

Dinh Vu Port Investment and Development Co (DVP) also reported a net profit of nearly VND46 billion ($2.2 million) in the first three months of this year.

Vinatex delays its IPO until September

The Viet Nam National Textile and Garment Group (Vinatex) has postponed its initial public offering (IPO) until September 22, announced the HCM City Stock Exchange.

The postponement of one of the most significant IPOs of the country this year, initially set for July 22, was based on the group's suggestion and the Government's guidance.

Under the approved plan, of the VND5 trillion ($234.7 million) capital which is equivalent to 500 million shares, 122 million shares would be sold in the IPO. The plan allowed the State to hold 51 per cent of the capital, and the local staff to buy 3 million shares, or 0.6 per cent of the charter capital. The company would also sell 120 million shares, or 24 per cent of the charter capital, to strategic partners.

With an initial price of VND11,000 ($0.49) per share, the IPO was expected to raise around VND1.22 trillion ($58 million).

According to Vinatex's Chairman of board of members Tran Quang Nghi, it would take three years to get the stocks listed on the exchanges.

Nghi added that in case of an early signing of the Trans-Pacific Partnership Agreement, the listing would be implemented earlier, perhaps within one to two years.

Vinatex is targeted to reach an export turnover of $3.6 billion by 2015 and $5 billion by 2020. On July 8, it appointed former deputy general director Le Tien Truong as its general director.


IPOs, Vinalines, restructuring plan, Vinatex