Vietnam National Shipping Lines (Vinalines) plans to launch its initial public offering (IPO) in mid-2018, Nguyen Canh Tinh, General Director of the company, said at a conference in Hanoi on January 23.
According to the equitization plan, Vinalines will implement the IPO and operate as a joint stock company.
As informed, the country’s government will take 65 percent of USD 630 million charter capital and investors will be able to buy the remaining 35 percent.
Following the IPO, there will be some changes to the company’s organization and management. Vinalines intends to expand access to capital markets, improve capacity and business efficiency.
The company was under the threat of bankruptcy five years ago and it underwent a restructuring process which has helped it recover, Nguyen Van, Minister of Transport, explained.
The company’s total revenue for 2017 was estimated at VND 15.9 trillion (around USD 698 million), up by almost 15 percent over its annual target. In addition, Vinalines’ consolidated profit for the last five years stood at VND 515 billion.
Furthermore, Vinalines’ shipping volumes reached 24.758 million tons in 2017, up by 7 percent compared with the annual target.
Vinalines is a state-owned business which currently operates a fleet of containerships, bulkers, tankers and other types of vessels. The company’s fleet currently accounts for 70% of the fleet capacity in Vietnam and carries 60% of the country’s import and export goods.
World Maritime News Staff