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.
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.