Vietnam Textile Research Institute (VTRI) concluded its initial public offering (IPO) on March 12 with the sale of 2.2 million shares for a return of VND49 billion (US$2.1 million), announced the Hanoi Stock Exchange.
With the starting price of VND12,583 (US$0.55) per share, 21 investors have registered to purchase a total of 14.3 million shares, 6.3 times higher than the share volume on offer.
The average successful bidding price was VND21,749 (US$0.96), 73% higher than the starting price of VND12,586 (US$0.55) and bringing proceeds to VND49 billion (US$2.1 million).
Under the approved equitization plan, VTRI, with its charter capital of VND50 billion (US$2.2 million), would sell 2.2 million shares, or 45.26% of its stake at the IPO and 45.26% to a strategic investor. The remaining 9.48% shares will be offloaded to employees. Substantially, the state will no longer hold any stakes at VTRI.
From 2014 to 2016, VTRI's total revenue from production and trading stood at an average VND76 billion (US$3.35 million) per year, according to the institute's recent released financial statement. In 2017, the total revenue of the institute reached nearly VND57 billion (US$2.51 million).
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).
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 piece is the 2,859sq.m land area in Hai Ba Trung District, Hanoi. After the equitization, this area will continue to be used as the head office and research center of the institute.
Another 5,311sq.m at Hai Ba Trung District will be available for use after the equitization, following the institute's profile on its website. In Ho Chi Minh City, VTRI is holding a land plot of nearly 2,220sq.m in District 1.
Following the Hanoi People's Committee's decision, VTRI will continue using the two above-mentioned land plots in the city for the purpose of scientific research and experiment.
VTRI set the 2018 revenue target at VND49 billion (US$2.1 million), while this number for the next two years is estimated at VND55 billion (US$2.4 million) and VND61 billion (US$2.7 million), respectively.
Consequently, VTRI's after-tax profit in 2018 is expected to reach VND186 million (US$8,200), followed by VND758 million (US$33,427) and VND923 million (US$40,700) for 2019 and 2020, respectively.
VTRI raises US$2.1 million through IPO.
|
Under the approved equitization plan, VTRI, with its charter capital of VND50 billion (US$2.2 million), would sell 2.2 million shares, or 45.26% of its stake at the IPO and 45.26% to a strategic investor. The remaining 9.48% shares will be offloaded to employees. Substantially, the state will no longer hold any stakes at VTRI.
From 2014 to 2016, VTRI's total revenue from production and trading stood at an average VND76 billion (US$3.35 million) per year, according to the institute's recent released financial statement. In 2017, the total revenue of the institute reached nearly VND57 billion (US$2.51 million).
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).
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 piece is the 2,859sq.m land area in Hai Ba Trung District, Hanoi. After the equitization, this area will continue to be used as the head office and research center of the institute.
Another 5,311sq.m at Hai Ba Trung District will be available for use after the equitization, following the institute's profile on its website. In Ho Chi Minh City, VTRI is holding a land plot of nearly 2,220sq.m in District 1.
Following the Hanoi People's Committee's decision, VTRI will continue using the two above-mentioned land plots in the city for the purpose of scientific research and experiment.
VTRI set the 2018 revenue target at VND49 billion (US$2.1 million), while this number for the next two years is estimated at VND55 billion (US$2.4 million) and VND61 billion (US$2.7 million), respectively.
Consequently, VTRI's after-tax profit in 2018 is expected to reach VND186 million (US$8,200), followed by VND758 million (US$33,427) and VND923 million (US$40,700) for 2019 and 2020, respectively.
Other News
- Better links with FDI firms to support Hanoi businesses
- Vietnam calls for more US investment in innovation, hi-tech
- Vietnamese leader urges Boeing to build production facility in Vietnam
- Foreign capital pouring into Vietnam's real estate market
- Vietnam news in brief - August 24
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
- Vietnamese gov’t urged to address impact of global minimum tax
Trending
-
Vietnam Party Chief holds talks with US President-elect Donald Trump
-
Vietnam news in brief - November 12
-
Hanoi's businesses place focus on digital transformation
-
Hanoi Festival of Creative Design 2024: celebrating the capital's cultural innovation
-
Expatriate workforce in Hanoi: Growth engine requring thorough administration
-
Ethnic minorities want more policies for socio-economic improvement
-
From tradition to trend: How modern approaches spark cultural pride in Vietnam's Gen Z
-
Hanoi works to make bus system greener
-
Capital Law to make Hanoi major center for quality education