Vietnam cement maker to raise US$16m in IPO

A major Vietnamese cement maker said on Tuesday it would auction state shares to the public on the Hanoi over-the-counter stock market later this month to raise at least US$16m.

The Ha Tien Cement Company No. 1 said in a statement it would sell 22,291,500 state shares, or 25.62 per cent, in an initial public offering on Nov. 27 to reduce government ownership a company official said was now 100 per cent.

The Ho Chi Minh City-based company set a starting price for bids at 11,500 dong ($0.72) per share, which suggested the firm would be valued at US$62.6m.

Baoviet Securities Company is advising on the share sale.

The construction industry, along with the industrial and service sectors, are key drivers of Vietnam’s economy, the world’s faster-growing after China.

The government has been accelerating privatisations to boost the capital market and plans to retain full ownership or major stakes only in industries linked closely to national defence and security.

State-run companies often undergo partial privatisation by selling shares to employees and outsiders before applying for a licence to list shares on the stock market.

Ha Tien Cement, which produces cement for customers in southern provinces and in Ho Chi Minh City, Vietnam’s commercial centre, has yet to announce a listing plan.

The VN Index rose 0.66 per cent to close at 517.11 points on Monday and is now up 68 per cent so far this year, making it the fastest rising Asian stock index in 2006.

The six-year-old market has 52 companies and a capitalisation of US$3.2bn.

Five companies have set debut dates later this month and in December, while six more have permission to list but have not announced dates. (US$1=16,056 dong)