Illustrative image (Source: VNA)

The Hanoi Stock Exchange (HNX) plans to organise this month five initial public offerings (IPOs) for State-owned enterprises to sell their stakes to external investors.

The Vietnam National Vegetable, Fruit and Agricultural Product Corporation (Vegetexco) has successfully sold all the shares that were offered during the company's initial public offerings (IPO) on September 4.

Six investors took part in the IPO and signed up to buy 31.25 million shares while the company offered only 26.67 million shares through the IPO, equal to 39 percent of the company's capital.

The company sold its shares at an average of 10,052 VND per share, bringing the worth of the auctioned shares to a total of 278 billion VND (12.4 million USD).

After the IPO, Vegetexco will sell the rest of its capital to T&T Group, Saigon-Hanoi Insurance Corporation and Art Export as well as the company's employees.

These investors will hold 35 percent, 15 percent and 10 percent of Vegetexco, respectively, while the company's employees will hold only one percent of the capital.

Vegetexco now has a chartered capital of 731 billion VND (32.5 million USD) and operates in processing, importing and exporting vegetable and agricultural products. In the first half of this year, the company recorded a net profit of 19.6 billion VND, an increase of 17 percent over a year.

Beside Vegetexco, the HNX will also organise IPOs for four other State-owned companies, including the Vietnam National Tea Corporation (Vinatea).

Vinatea plans to organise its IPO on September 16 to sell nearly 11.8 million shares, equal to 31.9 percent of the company's capital, to public investors, at a price of 10,000 VND per share.

After the IPO, Vinatea is expected to have a chartered capital of 370 billion VND (16.4 million USD) and will sell more than 1.6 million shares – 4.4 percent of the capital – to its employees and more than 23.5 million shares – 63.7 percent of the capital – to a strategic investor, namely Thong Nhat Production and Investment Co (GTN).

In addition, the HNX will also organise five auctions so that the State can divest capital in five other state-owned companies.

Last month, HNX organised seven auctions, including four IPOs and three auctions, to help the State make divestments, in which 70 percent of a total 57 million shares offered in the auctions were sold, garnering a total return of 518.3 billion VND (23 million USD) for the State.

Of these seven au﷽ctions, in five the HNX sold all the shares to ensure a return of 516 billion VND (22.9 million USD) for the State, including two IPOs and three auctions held to divest the State's share in these companies.-VNA