VIETNAM: Vinatex extends deadline for IPO
The Vietnam National Textile and Garment Group (Vinatex) has extended the date for its initial public offering by two months to give investors more time to evaluate the firm's performance.
The Hanoi-based company said the company's Prime Minister has approved the extension. The decision was made following two roadshows held this month, during which the company exchanged and received feedback from investors.
The original date for the IPO was set for 22 July. The new deadline for deposit will now be 12 September and the auction will take place on 22 September.
It will offer 24.46% of the company, or 122m shares, at a starting price of VND11,000 (US$0.52) per share.
Vintex noted that 24% would be sold to investors, and 0.46% to employees. The state will retain 51%.
The company will likely list in three years as the process in Vietnam can take longer, with an IPO and listing two separate processes.
Vinatex may also be hoping the IPO will accede with the agreement of the Trans-Pacific Partnership (TPP), which has been under negotiation for five years.
Once approved, it will make Vietnamese garments more competitive than those of China, where Vinatex currently imports a lot of its materials.
Vietnam's textile industry produces for over 50 countries around the world, with the US its largest export market after China.
The country is one of 12 negotiating the TPP trade agreement. Its implementation is expected to boost exports.
Apparel specialist retailers witnessed a current value decline of 6% from 2011 to reach sales of below VND23 trillion in 2012. Decline was due to the economic slowdown. In 2012, the Vietnamese economy...
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