Vinamilk to launch IPO in mid-2003
The fast-growing Vietnam Dairy Products Company (Vinamilk) is expected to launch an
initial public offering in mid-2003, becoming the biggest State enterprise so far to go public.
"The Government has allowed Vinamilk to undergo equitization this year," Ngo Thi Thu Trang, chief accountant and head of the company's equitization board, told the Daily yesterday.
"As planned, the company will complete the equitization procedures and announce share sales in June 2003."
The country's leading dairy product maker now has total assets of VND1.35 trillion (US$87.4 million).
Vinamilk is awaiting a decision on its equitization from the Ministry of Industry, which is overseeing the State-owned company.
The company is mapping out an equitization plan, in which the price of shares to be sold to outsiders and who will be entitled to buy shares will be decided.
In addition to local individuals and organizations, the company may sell a number of shares to foreign investors, including companies and individuals.
Trang said, "Vinamilk will make the equitization plan ready in about two weeks' time for submission to the Ministry of Industry. By then, the company will release more detailed information."
Earlier, the company already devised an equitization plan, which was passed to the Government in early 2001 and under which the State would hold a 51% stake and shares would be issued to raise more capital.
However, this plan has become inappropriate under the current circumstances, so it is under review, Trang said.
Vinamilk has yet to reveal the proportion of shares to be offered to outside investors, but it may be capped at 49%.
Last year, the company reported sales of more than VND4.7 trillion (US$304 million), a year-on-year rise of 18.5%, and exports of US$166 million, up 17%. Its 2002 pre-tax profit was put at more than VND700 billion.
It is looking to obtain 15-20% sales growth this year.
Vinamilk produces more than 90 different products ranging from condensed sweetened milk and powdered milk to confectionery, ice cream and other dairy products, and holds a local market share of 75-90%.
It is implementing a number of expansion projects, including a US$5-million milk processing plant in the central province of Nghe An and a US$4-million project to upgrade its existing factories in the country this year.
The Saigon Times Daily - February 10, 2003.
|