Việt Tiến Garment to be traded on unlisted market

Việt Tiến Garment Co workers fold shirts. The company's shares will be traded on the Unlisted Public Company Market. - Photo thitruongtaichinh.vn

The Hà Nội Stock Exchange said the shares would be coded VGG and had an initial reference price of VNĐ40,000 (US$1.8) per share.

Last month, the company converted 1.4 million bonds, which were issued on February 1, 2013 and due on February 1, 2016, into common shares.

Every bond, with a par value of VNĐ100,000 and a coupon interest rate of five per cent per year, was changed into 10 shares, with a face value of VNĐ10,000 each.

After the conversion, the company increased its charter capital from VNĐ280 billion to VNĐ420 billion.

Việt Tiến is an affiliate of the Việt Nam National Textile and Garment Group (Vinatex), which owned a stake of roughly 48 per cent in the company when it had VNĐ 280 billion in equity.

Investors from Hong Kong and Malaysia held a combined stake of 24 per cent in Việt Tiến, while this firm paid annual dividends in cash at a rate of up to 30 per cent, according to VnExpress online.

In a financial report dated March 1, Việt Tiến said it earned about VNĐ6.4 trillion in net revenues in 2015, an increase of 17 per cent over 2014. Its after-tax profits reached nearly VNĐ331 billion last year, a year-on-year rise of six per cent.

Việt Tiến celebrated its 40th year of establishment in HCM City on January 23, where officials from the company said it was expected to reach an export revenue of $1 billion by 2020, with an average export growth rate of 15 per cent per year.

In the long term, the company also planned to become a multi-national economic group.

HCM City-based Việt Tiến has branches in Hà Nội and the central cities of Đà Nẵng and Nha Trang. It owns brand names such as TT-up, San Sciaro, Manhattan, Smart Casual, Việt Long, Việt Tiến Slim Fit and Camellia.