SMC Goes Hand-in-hand with Securities Investors

SMC was set up from the equitisation of Construction Materials Enterprise No. 1 under the Ministry of Trade and has successfully developed the SMC trademark on the Vietnamese market-oriented economy. Notably, the company was renamed SMC Investment and Trading Joint Stock Company on August 19, 2006 - a milestone in the history of SMC. SMC is now a professional steel distributor and is operated under the ISO9001:2000 quality management system. SMC has recently been honoured with the “Vietnam Golden Star 2005” Title and Outstanding Saigonese Entrepreneur Title 2006.

 

SMC has built a business development strategy with VND1,600 (US$100 million) revenues in 2006 and VND1,750 billion (US$110 million) revenues in 2007. To realise the targets, SMC has boosted relations with its allies and joint ventures and expanded steel outsourcing for export by investing VND40 billion (US$2.5 million) in a 2-ha factor in Phu My Industrial Zone, Ba Ria - Vung Tau Province. The factory has been finished the first phase in October 2006 and will begin operation in March 2007.

At the general shareholders’ meeting on June 29, 2006, all shareholders agreed to list SMC shares on the stock market. This means that the SMC trademark will become more popular as SMC shares are traded everyday. The listing also affirms the stability of the company and increases the operational transparency. The listing will enable SMC to mobilise VND180-200 billion (US$11.25-12.5 million) for expansion in 2009. Besides, this will ensure rights and interests of shareholders.

At present, the securities management company is evaluating the price of SMC shares. According to statistics, the price of SMC shares is 1.2-1.8 fold higher than the initial price. SMC auctioned 900,000 shares with an individual denomination value of VND10,000, including 100,000 for foreign investors. The starting price was VND18,000 a share. A total of 121 bidders, including eight organisations and 113 individuals, registered to buy 2,194,100 shares. The total value was VND21,166,520,000.