Vinacomin plans public offering in order to raise charter capital

By April 1, 2014, the Government had invested more than VND2 trillion (US$92.6 million) in VIMICO. The firm's charter capital after the IPO is expected to reach exactly VND2 trillion ($92.6 million). Photo nangluongvietnam

The firm will offer nearly 46.7 million shares, equal to 23.34 per cent of the firm, at a price of VND10,500.

After the is IPO completed, the state will hold a 75 per cent of stake in the firm, and the employees will hold a 1.66 per cent share.

By April 1, 2014, the Government had invested more than VND2 trillion (US$92.6 million) in VIMICO. The firm's charter capital after the IPO is expected to reach exactly VND2 trillion ($92.6 million).

From 2011-14, VIMICO recorded revenues from VND2.4-3.2 trillion ($111-148 million), but its after-tax profits decreased from VND227 billion ($10.5 million) to VND101 billion ($4.67 million). Its return-on-equity (ROE) also fell from 15.2 per cent to 6.9 per cent.

From 2015-17, the firm expects to make a revenue of VND4.32-5.84 trillion ($200-270 million), and increase its after-tax profits from VND55.3 billion to VND106.7 billion ($2.56-4.94 million). It also expects its ROE to rise from 3 per cent to 6 per cent. The firm also plans to pay dividends between 2 and 4 per cent.

After the IPO, VIMICO will implement important projects in Lao Cai, including a VND2.56 trillion ($118.5 million) plan to expand and improve the capacity of the Sin Quyen copper mine in Bat Xat District, VND3.95 trillion ($182.8 million) to improve the capacity of its Lao Cai copper factory, and VND594 billion ($27.5 million) to build the Vi Kem copper mine in Bat Xat District.

VIMICO is a state-owned corporation that operates in mining and processing noble and precious metals such as gold, copper and silver using modern technologies to produce end products such as golden and copper sheets.

VIMICO has 14 subsidiaries which operate in mining and processing metals, running hotels and transportation companies, selling materials and equipment for mining business, and managing real-estate projects.

VIMICO also has four associate companies that buy and sell gold, silver and gemstones, produce and sell construction materials, and mine and process minerals.