Cienco 6 sets IPO date

On March 6 the company held a brief meeting to unveil the IPO plan.

According to Cienco 6 chairman Bui Phi Hung, the move would help the company boost its financial strength and competitiveness to better execute major transport infrastructure projects throughout the country.

“In respect to strategic partners, our firm is actively searching for firms that are financially strong as well as technology advanced to help foster our development in the post-equitisation period,” Hung said.

The registration process and deposit payments for the IPO started on February 24 and will continue to March 13. Registrants can sign up with auction agents following auction rules enacted by the Ho Chi Minh City Stock Exchange (HOSE).

The auction is slated to take place at 9pm at the HOSE on March 21.

According to Deputy Minister of Transport Nguyen Hong Truong, the ministry (MoT) will ramp up efforts to accelerate the equitisation of transport sector businesses this year to fulfill the prime minister’s commitment.

Besides Cienco 6, large-scale transport contractors are also planned to board the restructuring bandwagon this year.

Cienco 6 has been involved in major projects in the south and central regions such as the Vung Tau petrol depot, Saigon port complex, Tan Thuan terminal, Nha Be port, Vietnam-Singapore Industrial Park as well as several airports and expressways.

After its IPO, Cienco 6, with an estimated chartered capital of VND600 billion ($28.5 million), will continue playing a major role in key transport projects such as the Ho Chi Minh-Long Thanh-Day Giay highway, expanding the Dong Nai port, and building an elevated section and depot for the Ben Thanh-Suoi Tien metro line.

This year the company envisions revenue and post-tax profit targets of VND2.662 trillion ($126 million) and VND37.7 billion ($1.8 million), respectively. The share dividend this year is estimated at around 6 per cent, which is planned to gradually increase to reach 10 per cent by 2016.