Vietnam’s construction major Song Da Corporation will dispose 49% of government ownership via an IPO no later than 2019, with a 30% stake to be sold to strategic investors. The company will raise its charter capital to VND4.5 trillion (USD197.4 million) by 2019, and the local Transportation Ministry will hold 51% of that capital, as per an approval document signed on June 7. 

The approval document also said the government will trim its holding in Song Da to less than 50% in 2020. In addition, the State Capital Investment Corporation, the sovereign wealth fund of the country, will take over the state ownership in the construction firm.

Meanwhile, a portion of 18.82% equity will be sold to the public in its future IPO.

Vietnam has extended the time for Song Da’s privatisation after the company failed to meet the target of implementing an initial public offer in 2016. The firm said in April this year that it was determined to kick off the share sale this year.

With the possibility to become a joint stock company in 2017, Song Da expects its revenue and profit to decrease to VND10.7 trillion (-21% YoY) and VND320 billion (-14% YoY), respectively.

Founded in 1961, the Hanoi-based firm is mainly engaged in the construction of infrastructure projects, including hydropower plants, highways and government buildings; as well as real estate mixed-use complexes.

Source: https://www.dealstreetasia.com