Monday , 23 September 2019
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Saigon Port confirms initial public offering for June

Vietnam’s Saigon Port has confirmed its initial public offering (IPO) for 30 June as the port sells 20-25% of its southern port.

The IPO plan will ensure that the state holds at least 51% of the company’s charter capital after the privatisation, a factor that rules out the company Vinegroup, a leading property developer that has expressed an interest in buying 80% in the past.

Dinh Thi Thu Thao, analyst for VietCapital Securities Company, said: “The location and size of the ports are two critical elements to profit growth of a port operator, and Saigon Port possesses both.”

Learning from the IPO failure of other big ports such as Hai Phong, Da Nang and Quang Ninh, which managed to sell less than 50% of the offered shares, the government has agreed to adjust the state holding from an earlier plan of 75% to 51%, in order to attract more investors.

The port’s assets are valued at almost VND4tn (US$186m), in which the land use rights account for as much as VND246bn, providing the resource to partially repay its creditors.

If the port successfully sells a 49 per cent stake to outside investors, its parent firm, the Vietnam National Shipping Lines (Vinalines), will collect trillions of dong with which it can partially pay its creditors.

Saigon is the largest and busiest port in the country, based in Ho Chi Minh City and directly operates in key local seaports including Nha Rong Khanh Hoi, Tan Thuan, Saigon – Hiep Phuoc and Cai Mep – Thi Vai.