Government raises US$61.5 million from SOE divestment

Friday, 2018-04-13 11:09:17
 Font Size:     |        Print
 

Investors are waiting for the IPO auction of Mobifone.
 Font Size:     |  

NDO/VNA – The Government raised more than VND1.39 trillion (US$61.5 million) by divesting its stake in State-owned enterprises (SOEs) in the first quarter of this year, according to the Ministry of Finance.

During this period, the authorities also approved the equitisation plans of two SOEs---Phuoc An-Dak Nong Coffee Company and Van Tuong Company---at a total value of VND987 billion, of which VND187 billion is State capital.

The first quarter also saw several equitised SOEs complete their initial public offering (IPO) auctions, such as Binh Son Refinery, PV Oil, PV Power and Vietnam Rubber Corporation.

According to data released by StoxPlus Company, Vietnam’s stock markets raised VND21.3 trillion through the IPO auctions of 12 SOEs in the first quarter, equal to the total IPO value of the previous four years.

Experts attributed the high growth to a wave of equitisation of many large SOEs in recent times, especially in the field of energy.

Vietnam considers 2018 as a key year in the country’s restructuring plan for SOEs, aiming to divest State capital at 181 SOEs and equitise at least 86 SOEs throughout the year, including 64 large enterprises. The target is a difficult one, but experts believe it is feasible, thanks to many favourable conditions, including high economic growth and macro-economic stability.

Investors are waiting for the IPOs of large companies in the trade and services sectors, such as Mobifone, Ben Thanh Group, Satra and Saigon Tourist, or in the real estate and construction sectors, such as Investment Corporation and Hanoi Housing Development Corporation.

Last year, the Government raised over VND144.5 trillion by divesting its stake in SOEs. The proceeds were 2.41 times higher than the target of VND60 trillion set by the National Assembly.