First FDI Firm to Sell Shares Publicly in Vietnam

First FDI Firm to Sell Shares Publicly in Vietnam

Taiwanese cable maker Taya will be the first fully foreign-invested company to sell its stocks to public investors in Vietnam by early April, according to a company source March 18.

Taya is currently preparing its papers for the initial public offering (IPO) through Bao Viet Securities Company, which is a subsidiary of the state-owned Vietnam Insurance Corporation, a Taya official said.

About 20 per cent of Taya stocks, equivalent to VND36 billion (USUS$2.28 million), will be sold to public investors, it said.

Taya will sell 5 per cent of its stocks to the firm’s officials and employees while another small part will be sold to its strategic partners. The remaining stocks will be auctioned to the public by early April, the company said.

Taya’s founding stakeholders will still hold the remaining 80 per cent of total shares, it said.

Following Taya, five other foreign-invested companies in Vietnam will convert to joint stock firms as allowed by the Vietnamese government.

In 2004, Taya’s sales in Vietnam hit VND485 billion (USUS$31 million) with profits reaching VND58 billion (USUS$3.6 million). 
VNA, VietStock