With a successful bidding price of at VND96,500 (US$4.26) apiece, SCIC raised over VND2.3 trillion (US$101.2 million) from the sale, according to the Ho Chi Minh Stock Exchange.
Nawaplastic has become the largest stakeholder in Binh Minh Plastic.
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Consequently, Nawaplastic has become the largest stakeholder in the plastic company.
The closing price at the trading session on March 9 saw Binh Minh Plastic’s stock value at VND82,700 (US$3.63) per share, a reduction of VND13,800 (US$0.61) compared to SCIC’s selling price, resulting in a temporary loss of VND300 billion (US$13.1 million) for Nawaplastic.
Established in 1977, Binh Minh Plastics has cemented its position as the country’s leading manufacturer and trader of plastic pipes and fittings. The government last year removed the limit of foreign ownership in Binh Minh Plastics, which was previously capped at 49%.
Apart from Nawaplastic, its other investors include Franklin Templeton Investments that owns 10.78%.
Nawaplastic had earlier divested its entire 24% stake in Tien Phong Plastic JSC, a rival of Binh Minh Plastic, for more than VND1.5 trillion (US$66 million). As of 2017, SCG has invested about US$121 million in Vietnam’s plastic industry.
The Thai group also holds shares in a number of companies specializing in the production of household plastics, such as Viet-Thai Plastchem, TPC Vina Chemical and Plastic Corporation, and Minh Thai House Component.
Binh Minh Plastic’s IPO marks the restart of sales in 10 Vietnamese blue chips, including Vietnam Dairy Products, known as Vinamilk, and FPT, the largest information technology company in Vietnam.
All auctions were initially scheduled to be held by the end of 2017 but only Vinamilk pushed through. The remaining nine state-owned enterprises, including Binh Minh Plastics, had been delayed and are now expected to be done in the first quarter of 2018.
In 2017, Binh Minh Plastic’s revenue stood at VND4 trillion (US$176 million), up 10% year-on-year while after-tax profit was only VND471 billion (US$20.7 million), down 25% compared to the previous year.
