Agriseco to go in for an IPO
11-OCT-2008 Intellasia | Dau Tu Chung Khoan page 17
Oct 11, 2008 - 7:00:00 AM
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Agribank Securities Co (Argiseco) reported finalising necessary procedures to go for an Initial Public Offering (IPO). The broker's director Ha Huy Toan talked about the company's future plans in the following interview. Excerpts:
In this quarter (Q4), Agriseco will organise a share auction with the starting price of 10,500 dong each. What did Agriseco base on to offer the price?
The starting price of Agriseco is built through discounting dividend and comparing Price to Earnings (P/E) ratio based on defining corporate value and future business plans of Agriseco according to Circular No 146/2007/TT-BTC dated December 6, 2007 of the finance ministry.
After being transformed into a joint stock company, Agriseco's chartered capital will be raised to 1.2 trillion dong. Can you please outline the capital increase plan?
Agriseco chose the equitisation method pursuant to Section 1, Clause 4, Decree No 109/2007/ND-CP dated June 26, 2007. Under it, our company will maintain the current state holding, and issue extra shares to hike the chartered capital to 1.2 trillion dong. In the new capital structure, the state will hold 72% or 860 billion dong, 25% or 300 billion dong will be sold to external investors, and the remainder will be held by the company's employees and the labour union.
What will Agriseco do to upgrade corporate administration capacity and financial strength?
At present, we are drawing up a detailed plan to raise the chartered capital to four trillion dong by 2015. We expect that the corporate administration scheme will be clearer, after Agriseco converts into a joint stock company. Some senior positions in our board of director and management board could be filled from outside to improve the administration and business management at Agriseco.
The market recently witnessed the failure of share auctions. What do you think about the fact? Does Agriseco build up preventive plans?
The fact is that the success of a share auction depends on internal factors of that company and the auction time. As the market sees optimistic signals, IPOs will be successful and vice versa. Usually, companies select strategic partners to ensure the success of their IPOs.
As for Agriseco, we will probably have China Construction Bank's securities arm as our strategic partner. We have done business with each other for a long time and will become each other's strategic partners.
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