The deadline to submit dossiers to bid for the shares of Haiphong Thermal Power JSC came and went without a single investor showing the smallest sign of interest.
|The divestment from Haiphong Thermal Power did not manage to draw in a single investor |
Previously, the State Capital Investment Corporation (SCIC) released that it would divest its entire stake of 45 million shares in Haiphong Thermal Power JSC on April 22.
These offered shares make up 9 per cent of the charter capital of Haiphong Thermal Power. The initial unit price would have been VND26,000 ($1.13), nearly two times the current market price. SCIC expected to earn more than VND1.17 trillion ($50.87 million) in proceeds. However, the shares were unmarketable.
Haiphong Thermal Power reported a fast increasing speed. In 2019, the company acquired VND11.3 trilion ($491.3 million) in revenue and VND1.17 trillion ($50.87 million) profit, which are high record results of the company.
In the first quarter of this year, it reported after-tax profit of VND200 billion ($8.7 million) thanks to the increase of electricity capacity and decrease in loans.
At present, the company's shares are transacted on the UpCOM at VND17,000 (73.91 US cents), up 26 per cent compared to early year but still only 35 per cent of its valuation on first days of trading.
The divestment from Haiphong Thermal Power is part of SCIC’s divestment schedule from state-owned companies in 2020. Notably, it recently confirmed its plan of divesting 85 state-owned enterprises, including VNSteel, Vinatex, and Bao Viet Holdings.
SCIC’s move is to boost efficiency and contribute to socio-economic development by focusing investment on key sectors of the economy, namely IT, telecommunications, food processing, finance, oil and gas, and aviation.