With a starting price of VND12,583 (US$0.55) per share, the government targets to earn VND28 billion ($1.23 million) from the IPO.
VTRI plans its IPO in March.
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Similarly to Hanoi Trade Corporation (Hapro), which will conduct its IPO on March 30, VTRI also owns many land plots and properties at prime locations in Hanoi and Ho Chi Minh City, which is considered a key attraction for investors.
Perhaps the most notable is the 2,859sq.m land area in Hai Ba Trung District, Hanoi. After the equitization process, this area will continue to be used as the head office and research center.
Another 5,311sq.m at Hai Ba Trung District will be available for use after the equitization, following the institute's profile. In Ho Chi Minh City, VTRI is using a land plot of nearly 2,220sq.m in District 1.
From 2014 to 2016, VTRI's total revenue from production and trading stood at an average VND76 billion (US$3.35 million) per year. In 2017, the total revenue of the institute reached nearly VND57 billion (US$2.51 million).
That said, VTRI's after-tax profit in 2017 was recorded at VND608 million (US$26,691). By the end of 2017, the total value of VTRI exceeded VND41 billion (US$1.8 million), including fixed assets of VND22 billion (US$965,800) and variable assets of VND18.87 billion (US$828,000).
The total revenue from the equitization and divestment in 2017 is estimated at VND144.6 trillion (US$6.3 billion), 2.4 times higher than the original target of VND60 trillion (US$2.6 billion) set by the National Assembly, informed the Ministry of Industry and Trade (MoIT).
Specifically, the revenue from equitization and divestment reached VND5.2 trillion (US$229 million) and VND139.4 trillion (US$6.1 billion), respectively.
In 2018, MoIT will step up efforts to divest state capital from a series of SOEs, including larges SOEs such as Vietnam National Petroleum Group (Petrolimex), Hanoi Beer Alcohol and Beverage (Habeco), and Vietnam Engine and Agricultural Machinery Corporation (VEAM).
