VNSteel plans to sell 1.2tr dong stake to foreigner partner

After the privatisation, Vietnam Steel Corp (VNSteel) will hike its chartered capital to eight trillion dong via offering shares to foreign strategic partners.

The company expects to finalise the equitisation and change to a joint stock company model in August 2011, Vu Ba On, VNSteel’s deputy general director said.

As planned, over 659 billion dong will be offered for the initial public offering (IPO). Currently, the initial price has still been veiled. Specialists forecasted the offering price of VNSteel will be around 10,000 dong per share.

After the equitisation, VNSteel will scale up its chartered capital to eight trillion dong through issuing 1.2 trillion dong of shares to foreign strategic partners. At present, there are five foreign investors those all are steel firms with big brands showing interest in shares of VNSteel, however, there were not any Chinese firms, according to On.

The Vietnamese prime minister on April 18 approved the privatisation plan for VNSteel via selling a part of current stake holding together with offering more shares to hike chartered capital. State will hold over 65 percent of chartered capital.

VNSteel now has a chartered capital of 6.8 trillion dong, of which, state holding is 6.12 trillion dong (90 percent stake). The company will offer 10.131 billion dong (0.151 percent stake) of preferential shares for the employees, 10 billion dong (0.149 percent stake) for the company’s labour union and 659.869 billion dong (9.7 percent stake) for the IPO.

 

Category: Stocks