Vietnam's most popular bicycle brand peddles shares in IPO valued at $11 mln

By    June 8, 2016 | 04:41 pm GMT+7

Vietnamese bicycle manufacturer Thong Nhat said on Tuesday that its initial public offering valued the business at VND246 billion ($11 million) based on market capitalization.

Shares of Thong Nhat Bicycle were priced at VND10,386, and the bicycle maker made VND31.5 billion from the offering, said the Hanoi Securities Trading Center.

More than three million shares were sold in the offering, representing about 13 percent of the business. Thong Nhat also plans to sell 41.7 percent of its business in an upcoming offering to strategic investors.

vietnams-most-popular-bicycle-brand-valued-at-11-million-through-ipo

Investors have recently become more interested in buying into Thong Nhat because the company has long-term leases on 30,000 square meters of “golden land plots” in some of the most sought-after locations in Hanoi. 

Thong Nhat first announced plans in 2014 to go public in order to expand into the furniture and real estate sectors.

The privatization will cut the state's stake in Thong Nhat to 45 percent.

Thong Nhat has yet to announce when it plans a domestic listing. Initial public offerings and stock market debuts are separate affairs in Vietnam.

The company has set a target for 2016 of VND275 billion in revenue with a net profit of VND4.7 billion.

Vietnam is trying to accelerate share sales in state-owned enterprises (SOEs) that began in the 1990s as the government seeks to spur economic growth to 6.7 percent this year.

To speed up the process, Vietnam plans to double the stock market's capitalization and also aims to simplify privatization procedures as current complexities have dampened the overhaul of inefficient state companies. So far, 90 percent of state-owned companies have sold off part of their stakes.

 
 
go to top