First FIE set to float on local bourse

The commission said the Dong Nai province-based firm had met most of the requirements but still needed to make some minor changes, including an equity capital adjustment, before a formal listing licence could be issued.
“We have been engaged in preparations for Taya’s bourse listing for months. We hope that Taya shares will hit the trading floor within the year,” said Nguyen Quang Vinh, director of the Bao Viet Securities Company, the listing consultant for Taya Vietnam.
“With things moving along swiftly, Taya Vietnam will hopefully become the first foreign-invested enterprise (FIE) to float its shares on the local bourse,” added Vinh.
Taya Vietnam has chartered capital of more than VND182 billion ($11.6 million), with the two founders, Taya and Dai Trien, holding a combined stake of 80 per cent, with the remainder held by other interests.
Under the prevailing rules of listing FIEs on the bourse, shareholding FIEs will only be able to list shares they sell through an initial public offering, while foreign investors will only be permitted to hold 30 per cent of listed shares at most.
As is the case, Taya Vietnam will only be allowed to list 20 per cent of its shares, or just over 3.65 million shares, on the bourse.
Of the listed 20 per cent, 15 per cent will be offered up to the public, while the other 5 per cent will be divided for the company’s staff, with four per cent going to workers and one per cent to board members.
Taya Vietnam was previously a wholly Taiwanese-owned firm, but recently transformed itself into a joint-stock concern following a share auction in May this year.
Chen Ping Sen, general director of Taya Vietnam, was looking to mobilise more capital and list on the stock market.
“We want to complete the process as soon as possible so that shares can be traded on the stock exchange,” said Chen.
Prior to Taya Vietnam’s transformation, the business was known as the Viet Minh Son Company, originally setting up shop in Vietnam in 1992 with a total investment of $7 million and a licence to produce electrical wires and cables for 50 years.
Renamed Taya Vietnam in 1995, the company now has total registered capital of $21.5 million, with Taya holding a 72-per cent stake and Dai Tien the balance.
Taya Vietnam’s first factory in Bien Hoa 2 Industrial Park in the southern province of Dong Nai covers six hectares, employs more than 400 people and turns out 1,000 tonnes of product a month.
Taya’s second factory in the northern province of Hai Duong is valued at $15 million and is considered part of the company’s expansion strategy, helping to enhance their competitive edge and expand sales in northern Vietnam.
Financial experts said the listing of foreign-invested firms on the stock exchange is an necessary trend for the economy, which provides the country with a more dynamic bourse.
Apart form Taya Vietnam, the Vietnamese Government has so far permitted 10 FIEs to change their ownership model, including Interfoods, Austnam, Taicera, Tung Kuang and Royal International.