VNSteel seeking foreign strategic partner
VNSteel will offer 120 million shares to the strategic shareholders in Q4 2011 to scale up its chartered capital to eight trillion dong. Currently, the company is seeking foreign strategic partner for charter capital increase.
After finalising the IPO (initial public offering) on June 10, Vietnam Steel Corp (VNSteel) is continuing to seek foreign strategic partner to hike its chartered capital.
The total volume of shares VNSteel offered to the IPO was 65,986,900 units at the initial price of 10,100 dong per share. IPO results of VNSteel showed there were 311 investors registering to buy shares with a total registration volume of 39,151,400 units. The total value of shares being sold was 395.455 billion dong. The highest price was 13,000 dong per share (with a total volume of 100 units) and the lowest price was 10,100 dong per share (with a total volume of 38,935,800 units) and therefore the average price was 10,101 dong per share.
VNSteel will ask the Ministry of Industry and Trade and the government to deal with the remaining volume of 26,835,500 shares from the IPO. Thus, VNSteel raised nearly 400 billion dong from the IPO. This is considered a success amid current difficulties of the stock market. After the IPO, VNSteel’s chartered capital is 6.8 trillion dong, of which, state still holds 90 percent stake.
Immediately after the successful IPO, VNSteel will switch to a joint stock company model, adjust its organisational structures, look for strategic partners and carry out production-business strategies, representative from VNSteel said.
At the time of building equitisation plan, there were four investors as international steel manufacturers mailing to express their concern and desire to become a strategic shareholder of VNSteel. Those are Nippon Steel Corp (Japan), Marubeni Itochu Steel Inc (Japan), Novolipetsk Steel (Russia), Evraz Group SA (headquartered in Luxembourg and operates in many countries around the world).
Mai Van Tinh, VNSteel’s Chair said, these are big manufacturers or distributors of steel in the world, consistent with the VNSteel’s desire to seek a strategic shareholder.
Under the approved equitisation plan, the state still holds more than 65 percent of charter capital in VNSteel. VNSteel with a chartered capital of 6.8 trillion dong will sell 10 percent stake in the IPO and transform into a joint-stock corporation. Then, VNSteel will raise its chartered capital to eight trillion dong by issuing 120 million shares at par value of 10,000 dong per share to the strategic shareholders in Q4 2011.
VNSteel officials also said that after two years, depending on the actual situations, VNSteel would consider going public and reducing the state holding to 51 percent.
Category: Business
