Vietnam Pharmaceutical Corporation to go public in June

By Dam Tuan   May 25, 2016 | 05:12 pm GMT+7

Vietnam’s state owned pharmaceutical corporation Vinapharm will hold an initial public offering (IPO) to sell over 40 million shares on June 22 at a starting price of VND10,000 ($0.45) per share.

The parent company of Vinapharm will offer 42,557,000 shares, making up nearly 18 percent of the company's charter capital, which is expected to reach VND2.37 trillion (more than $106 million) after the IPO, according to the Hanoi Stock Exchange (HNX).

The Ministry of Health is the major stakeholder in the company with 154 million shares, accounting for 65 percent of its charter capital.

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Vietnam Pharmaceutical Corporation is holding an IPO following the state divestment scheme. Photo by tuvangpp

Vinapharm was established in 1971 and was transformed into a single member joint stock company in 2010.

The company’s revenue reached VND16.6 trillion (over $744 million) in the first six months of 2015, an increase of nine percent compared to the same period in 2014.

Vinapharm's export turnover reached $7.86 million during that period, falling 17 percent on-year. The corporation's pre-tax profit hit VND505 billion (nearly $23 million) in the first six months, falling five percent compared to the same period in 2014.

Vinapharm is currently the owner of prime real estate in Hanoi and Ho Chi Minh City, with 3,280 square meters on the capital's Lang Ha Street and 2,670 square meters on Nguyen Huy Tuong Street. It also has land on Dien Bien Phu Street in Ho Chi Minh City.

Image caption: Vietnam Pharmaceutical Corporation is holding an IPO following the state divestment scheme.