Song Da Corporation withdraws 30 per cent offering to strategic investors

11:28 | 06/10/2017
Song Da Corporation will put 200 million shares, equaling 48.82 per cent of its chartered capital, up for sale at its initial public offering (IPO) instead of the 18.82 per cent it previously planned, while simultaneously withdrawing the plan of offering a 30 per cent stake to strategic investors.
Song Da Corporation is switching up its equitisation plan

The corporation is following directions issued by the prime minister (PM) about the adjustment of the corporation’s restructuring plan, according to information published on the Government Portal. The reason for the adjustment has yet to be disclosed.

Earlier in June 2017, the PM approved the equitisation plan of Song Da Corporation, which has a chartered capital of VND4.5 trillion ($197.4 million), equaling 450 million shares.

According to the approved plan, Song Da Corporation will offer 135 million shares, equalling 30 per cent of its chartered capital, to strategic investors, simultaneously putting 84.76 million shares (18.82 per cent) up at its IPO and sell 822,000 shares (0.18 per cent) to its employees.

After equitisation, the state will still hold 51 per cent of the chartered capital, equalling 229.5 million shares by 2019, and then the state holdings in the corporation will decrease to under 50 per cent by 2020.

Along with the equitisation plan, Song Da Corporation plans to divest its holdings in numerous hydro power plants.

Earlier on September 18, the corporation completed the divestment of its entire 15.38 million share holdings in Huong Son Hydropower JSC and earned VND200 billion ($8.77 million). Notably, three investors won in the auction, buying in at VND13,500 ($0.57) per share, VND13,819 ($0.61), and VND15,300 ($0.67).

Furthermore, the corporation is waiting for directions from the Ministry of Construction for its divestment plan from Song Da Urban and Industrial Zones Investment Development JSC (Sudico). The divestment is expected to be conducted after the corporation’s equitisation.

According to the corporation’s financial report in 2016, the corporation earned VND9.97 trillion ($437.4 million) in consolidated net revenue. As of December 2016, Song Da Corporation had a total asset value of VND31.9 trillion ($1.39 billion), with an equity of VND7.83 trillion ($343.5 million).

It had to bear a total debt of VND24.1 trillion ($1.06 billion), VND17.7 trillion ($776.5 million) of which is short-term debt.

Established in 1961, Song Da Corporation specialises in developing thermal power plants, roads, industrial factories, and real estate projects, as well as manufacturing construction materials.

State to retain controlling share after equitising Song Da Corporation

By By Ha Vy

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