The firm's Board of Directors and will submit this proposal to the annual shareholders’ meeting, which is expected to be organised on April 29.

 

Previously, in November 2017, the firm received the securities registration certificate from Vietnam Securities Depository (VSD) to list 1.328 billion shares.

 

VEAM currently holds a 30 per cent stake in Honda Vietnam, a 20 per cent stake in Toyota Vietnam, and a 25 per cent stake in Ford Vietnam, which bring hundreds of millions of dollars in profit every year.

 

In August 2016, it put 167 million shares, equalling 13 per cent of its charter capital, on sale at the initial public offering (IPO) with the initial price of VND14,290 ($0.64) per unit.

 

Being considered the largest IPO of the year, it expected that after the sale VEAM’s charter capital will increase to VND13.28 trillion ($595.5 million), equalling 1.33 billion shares. Accordingly, the state will hold 51 per cent of the charter capital with 678 million shares, and strategic shareholders will hold 36 per cent, equalling 478 million shares.

 

However, in reality, 89.5 per cent of the offered shares were sold for the average price of VND14,291 ($0.65) apiece. VEAM acquired VND2.14 trillion ($93.96 million) from the deal.

 

Established in 1990, VEAM specialises in manufacturing agricultural machinery, components, and assembling automobiles and motorbikes. The company has 20 subsidiaries nationwide, including Song Cong Diesel Limited Company, Southern Vietnam Engine and Agricultural Machinery Company Ltd., and An Giang Mechanical JSC.

 

In addition, the company currently holds a 30 per cent stake in Honda Vietnam, a 20 per cent stake in Toyota Vietnam, and a 25 per cent stake in Ford Vietnam, which bring massive profits. Notably, in 2016, it acquired VND7.96 trillion ($349.5 million) from Honda Vietnam, VND1.82 trillion ($79.9 million) from Toyota Vietnam, and VND272 billion ($11.9 million) from Ford Vietnam.

 

Furthermore, it owns numerous sizeable land plots in Hanoi, Ho Chi Minh City, Haiphong, Dong Nai, and Ba Ria-Vung Tau, among others. Besides, VEAM leads the domestic engine and agricultural machinery market with a market share of 15-25 per cent.

 

According to its 2017 financial report, VEAM earned VND2.54 trillion ($111.5 million) in net revenue from the business and services sector alone, up 6 per cent on-year. However, its after-tax profit in 2017 was VND546 billion ($23.97 million) because profits from its joint venture companies were not yet to be included.

 

By Kim Oanh

 

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