Cam Ranh Port to auction 6 million shares in IPO

Ships are anchored at Cam Ranh Port. The port operating firm will sell more than six million shares during its IPO on March 16. Photo Cam Ranh Portal

The firm said foreign investors may buy the shares, for which the bidding will initially be set at VND10,000 (US$0.48) per unit. Its total charter capital is expected to hit roughly VND264.52 billion ($12.60 million) after the IPO.

According to an online prospectus, Viet Nam National Shipping Lines (Vinalines) is the parent company of Cam Ranh Port. Vinalines holds this firm's entire state capital of more than VND200.5 billion ($9.55 million), as defined on January 1, 2014.

While Vinalines will represent 51 per cent of the post-privatisation equity, the six million shares to be auctioned will account for 23 per cent, and a similar stake will be sold to strategic investors.

Cam Ranh Port said it is calling for strategic investors who deal in goods import-export, transportation, logistics, and port operation as well as port infrastructure construction. It also needs partners dealing in banking and finance.

The company will reserve a stake of more than 46 per cent for other outside shareholders and 2.98 per cent for employees.

Cam Ranh Port is based in the central province of Khanh Hoa and specialises in seaport services such as inshore transport, vessel repair and fuel trade, alongside goods loading and storage for hire. The Cam Ranh Port Marine Services joint stock company is its affiliate.

Financial reports said the net turnover of Cam Ranh Port ranged between VND75 billion and VND119 billion (between $3.57 million and $5.57 million) per year over the last three years, with annual growth reaching nearly 35 per cent.

Goods loading accounted for 38.7 per cent of all revenue, while transport represented 18.9 per cent and fuel trade made up 25.7 per cent.

The company projected an annual revenue of some VND223 billion ($10.62 million) and an after-tax profit of roughly VND27 billion ($1.28 million) by 2018. The dividend rate is expected to reach 7 per cent by then.

Maritime Bank Securities is the advisor for the IPO.