In continuation with its divestment exercise, the Vietnam State plans to offload 17.97 per cent stake in ceramics and building material corporation Viglacera on the Hanoi Stock Exchange by June.
In an announcement, the Hanoi-based firm said, it is accelerating the completion of procedures for state capital divestment scheduled in the second quarter this year.
Under the plan, the Ministry of Construction, which is the state representative of Viglacera, will divest its stake from 53.97 per cent to 36 per cent by June this year and will totally exit next year.
The state’s 80.5 million shares will be sold via competitive bids, and the auction price will be the average of the prices recorded in the last 30 trading sessions prior to the bidding date and not lower than VND26,100 ($1.14) apiece. At the price, the State expects to earn VND2.1 trillion ($92.4 million) from the sale.
Established in 1974 and equitised in 2014, Viglacera’s charter capital has increased to nearly VND2.65 trillion ($118.3 million) over the years. The Hanoi-based firm is Vietnam’s largest producer of ceramics and tiles for construction, owning 10 factories, 22 subsidiaries and five affiliate companies.
In February 2014, investors bought nearly 19.5 million shares during the company’s initial public offer (IPO), accounting for some 25 per cent of the stake on offer. Foreign buyers snapped up half of the shares. Viglacera earned VND200 billion ($9.3 million) from the IPO, after which, the well-known ceramic producer targeted to publicly list within one year.
Viglacera is also a real estate investor in addition to its construction related business. In 2015, Viglacera secured a nod from the Ministry of Construction to establish a real estate company, named Visaho, with a charter capital of VND35 billion ($1.6 million). The company is known for affordable housing projects for low-income people in industrial parks.
In the first quarter, Viglacera’s revenue stood at VND1.83 trillion ($80.5 million), down 10per cent year-on-year while after-tax profit at VND103 billion ($4.53 million), down 3 per cent year-on-year.
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