Vietnam Forest Corporation branches out with public offering

By Dam Tuan   April 14, 2016 | 08:00 am GMT+7

Vietnam Forest Corporation (Vinafor) plans to hold IPO and sell 24.3 million shares, equivalent to seven percent of its charter capital, at a starting price of VND10,100 per share.

On April 21, the forestry sector corporation will divest seven percent of state ownership on the Hanoi Stock Exchange (HNX).

The charter capital of Vinafor after the divestment is VND3.5 trillion (nearly $160 million) and it will obtain minimum amount of VND245 billion ($11 million).

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Vinafor plans to sell its state owned stake next week. Photo by HQ Online.

Vinafor is considering a joint venture with Japan’s Sojitz Corporation and JK Paper (India) on a pulp production plant in Quang Ngai province with a capacity of 150,000 tons per year.

The total estimated investment is about VND3.5 trillion (about $160 million), of which Vinafor plans to contribute 12 percent worth VND420 billion.

Vinafor manages about 923.8 million square meters of forest in 12 provinces, including Hanoi, Hai Phong, Ho Chi Minh City, Gia Lai and Quang Ngai.

The corporation's total sales increased from VND1.1 trillion to 1.4 trillion from 2012 to 2015. The forestry giant expects sales from 2016 to 2018 could reach $3.6 trillion to $4.5 trillion with a dividend of 5.5 to 7.1 percent.

Vinafor was established in 1995 under the former Ministry of Forestry, and currently comes under the Ministry of Agriculture and Rural Development. Vinafor engages in forestry activities throughout the country and stable growth has been recorded since its establishment.

Source: HQ Online