JavaScript is off. Please enable to view full site.

Vietman’s largest textile firm says IPO price remains a mystery

Thursday, October 24, 2013, 15:27 GMT+7
Vietman’s largest textile firm says IPO price remains a mystery
An employee works at the manufacturing plant of a Vinatex subsidiary in Ho Chi Minh City.

Vinatex, the country’s largest textile company, is due to IPO (initial public offering) during the last quarter of this year at a price its CEO says remains a mystery.

The state-run company, fully known as Vietnam National Textile and Garment Group, has finished several important steps ahead of the IPO, CEO Tran Quang Nghi told Tuoi Tre.

These include assessing the company’s value and determining the number of interested investors and strategic shareholders over the privatization, Nghi said.

The CEO said the IPO will open new chances for Vinatex as well as the Vietnamese textile industry, especially after the Trans-Pacific Partnership is signed in the near future.

But Nghi refused to say how his company will be priced at the IPO.

“I think it is an unknown number,” he said.

Nghi acknowledged that this is “not the prime time for the stock market as well as for investors,” and thus he “could not say anything in advance regarding the IPO price.”

As a state-run company, Vinatex has 51 percent of its stake held by the government, and Nghi hoped investors will buy up to 40 percent of the stake at the IPO.

As of the end of last month, Vinatex posted earnings worth VND33 trillion, with export turnovers rising 12 percent year-on-year to $3.2 billion.

Aiming high

According to Tran Quang Nghi, Vinatex has planned to set up an investment fund, called "TexFunds", with an initial capital of around VND300-500 billion in order to attract investments in infrastructures for the textile industry which is quite costly at the beginning.

The money raised via the fund will be reinvested in Vinatex's closed production chain, from yarn to complete garment items.

Tuoitrenews

More

Read more

;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news