Good medicine for state duo

November 27, 2012 | 14:08

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State-owned veterinary medicine producers Navetco and Vetvaco have received the green light to go public.

Ho Chi Minh City-based veterinary medicine manufacturer Anova will become the strategic holder in Navetco and Hanoi-based Vetvaco.

With VND160 billion ($7.7 million) in chartered capital, Navetco will issue 16 million shares at VND10,000 ($0.5) each, with the state’s holding in the company kept to 10.4 million shares, or 65 per cent of capital.

More than 1.87 million shares, or an 11.7 per cent stake, will be sold to Anova and almost 1.3 million shares (8.12 per cent stake) will go to employees. More than 1.9 million shares will be sold to general investors at the initial price of VND11,000 (53 cents) through auction on the Ho Chi Minh Stock Exchange.

Meanwhile, Vetvaco has VND36 billion ($1.73 million) in chartered capital to issue 3.6 million shares for the first time. It will see the state’s holding at 65 per cent, or about 2.34 million shares. Anova is allowed to hold a 10 per cent stake, or 360,000 shares.

Vetvaco will sell 366,800 shares to general investors via auction sale through securities firms. The starting price will be VND11,500 (55 cents).

In both companies, their shares will be sold to Anova at prices not lower than the lowest auctioned prices at both firms.

Both Navetco and Vetvaco now operate under the state’s agriculture arm and are major manufacturers of veterinary medicines, animal vaccines and biological products for cattle, poultry and aquaculture.