Vietnam’s government is targeting to raise VND4.89 trillion ($210 million) from an initial public offering (IPO) of Vietnam National Shipping Lines (Vinalines) scheduled on September 5, 2018.
According to an official release on Hanoi Stock Exchange (HNX), Vinalines will auction 488.82 million shares, or a 34.8 per cent stake at the price of VND10,000 ($0.4) apiece at the HNX. Its charter capital is estimated at approximately VND14 trillion ($616.7 million).
The IPO is part of Vietnam’s broader privatisation programme to increase the efficiency and performance of state-owned firms, and to fill government coffers as public debt nears the mandated ceiling of 65 percent of its gross domestic product (GDP), said a report in Reuters.
The State still holds 65 per cent stake, equivalent to 912.9 million shares, in Vinalines after the IPO.
Vinalines is a State-owned enterprise under management of the Ministry of Transport. It engages in shipping, port management and maritime service, and logistics aspects in Việt Nam and internationally.