94 per cent of Vinaconex unmarketable on stock exchange

December 08, 2017 | 22:39

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Only 5.35 million shares of Vietnam Construction and Import-Export JSC (Vinaconex) out of the 96.24 million on offer were sold via the auction organised by State Capital Investment Corporation (SCIC) this morning, indicating that 94 per cent of Vinaconex may be unmarketable.

Vinaconex's failed to go above the initial offering price, selling only 6 per cent of the shares on offer

According to newswire NDH, three investors, including one organisation, bought five million shares and two individuals registered to buy 5.35 million shares.

After the auction, SCIC acquired VND137 billion ($6.03 million) from selling the stakes at the price of VND25,600 ($1.12) apiece (the initial offering price), decreasing its holdings in Vinaconex to 52.2 from 57.79 per cent.

Previously, SCIC released the plan to auction off 96.24 million shares in Vinaconex, equal to a 21.79 per cent stake, on December 8 on the HNX. SCIC set the minimum bidding price for the competitive share offering at VND25,600 ($1.12) apiece.

At this price, the state investment company expected at least VND2.46 trillion ($108 million) in proceeds, while retaining a 36-per-cent stake in the company.

Each prospective investor had to register to buy a minimum of 5,000 and a maximum of 96.24 million shares. The cash deposit must be equal to 10 per cent of the value of the booked purchase at the offering price.

A few days ago, Vinaconex divested its entire 25.5-million shareholding in Vinaconex Water Supply JSC (Viwasupco) through an auction. Sinh Thai LLC bought 17.3 million shares and REE 8.2 million shares at the price of VND39,904 ($1.76) apiece. After the purchase, Vinaconex acquired $47.1 million, and Sinh Thai LLC and REE increased their holdings in Viwasupco to 50.4 and 34.7 per cent, respectively.

Vinaconex operates in diverse fields, including property development, design consultancy, industrial production, financial investment, education and training, and commercial activities. It currently manages nine subsidiaries and affiliates.

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