The State Capital Investment Corporation (SCIC) will put its entire 36.3 percent stake, or 44.2 million shares, in the Vietnam Vegetable Oils Industry Corporation (Vocarimex) on the Hanoi Stock Exchange on August 15. (Photo: nhipcaudautu.vn) Hanoi (VNS/VNA) - The State CapitalInvestment Corporation (SCIC) will put its entire 36.3 percent stake, or 44.2million shares, in the Vietnam Vegetable Oils Industry Corporation (Vocarimex)on the Hanoi Stock Exchange on August 15.
Interested investors must register to buy thewhole lot.
The initial price of each share (coded VOC) willbe 22,300 VND (0.96 USD), which means SCIC could expect to receive a minimum of986 billion VND (42.48 million USD).
This starting price is 34 percent higher thanVOC's opening price of 16,600 VND on July 29 on the UPCoM, Vietnam’s exchangefor unlisted public companies.
Vocarimex was established in 1976. The corporationwas equitised in 2011 and was transformed into a joint stock company in 2014with initial charter capital of 1.2 trillion VND. The company began trading onthe UPCoM in 2016.
Since its equitisation, Vocarimex has notincreased its charter capital.
According to analysts, SCIC named the highstarting price because Vocarimex currently holds major stakes in severalleading cooking oil producers in Vietnam as well as large plots of land inprime locations across the country.
For instance, Vocarimex has a 26.54 percent stakein Tuong An Vegetable Oil (TAC) and a 40 percent stake in Golden Hope Nha Be(GHNB). As of the end of 2018, the two companies ranked second and third interms of market share in Vietnams cooking oil industry, accounting for 20 and11 percent respectively, according to market research firm Viet Analytics.
Vietnam’s leading food company Kido Corporation isVocarimexs biggest shareholder, having a 51 percent stake (nearly 62.12 millionshares). SCIC's 36.3 percent stake (44.21 million shares) makes it the secondlargest shareholder.
According to Vocarimexs bi-annual business report,revenues fell to 1.32 trillion VND in the first six months of the year, down 39percent year on year. Profit after taxes dropped to 99 billion VND, down 28percent.
The auction of Vocarimex shares is one of 108divestments planned by SCIC this year.
SCIC is a government agency set up to restructurestate-owned enterprises to make them more efficient and to enable the state toconsolidate capital in key sectors.-VNS/VNA
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