Vietnam’s state-owned building material firm Viglacera Corporation is planning to list during the third quarter of this year, later than expected by a couple of months.
Viglacera chairman Luyen Cong Minh said the company will be listing on the Hanoi Stock Exchange, adding that the listing procedures are about to be completed.
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.
The company is also on a look out for strategic partners, who could either be a domestic or an international investor.
Although the parent company announced profit in 2014, the performance of the corporation was affected by the 10 subsidiaries, which reported high accumulated losses. Therefore, Viglacera will pay dividends at only 2.5 per cent for the last fiscal year.
Minh explained further that the company needed to save part of its profit to re-invest.
Widely known as a manufacturer of ceramic and stone floor tiles, bricks, glass and toilet equipment, Viglacera also invests in real estate, which is seen as its second key operation. The company set aside 93 per cent of its VND1.76 trillion ($81.86 million) development investment fund for its realty portfolios last year.
“This year, apart from small apartment projects, we will kick off complex projects in Hanoi and Bac Ninh,” Viglacera CEO Nguyen Anh Tuan revealed in a recent meeting.
In addition, the company aims to establish a joint venture in Cuba, which will focus on producing ceramic bricks. Besides, it will continue investment in building factories in Vietnam’s northern provinces.
Viglacera will also issue additional shares this year to increase its charter capital (from VND2.65 trillion) to VND3.07 trillion and at the same time reduce the state holding from 91.48 per cent to 75 per cent.
Its revenue and profit for 2015 are expected to reach VND4.55 trillion and VND290 billion.