Furniture Manufacturer to Launch IPO in October
Truong Thanh Furniture Corporation (TTFC), one of the Vietnam’s biggest wooden furniture makers and exporters will auction 2.8 million shares, or 23 per cent of the company’s equity in an initial public offering (IPO) October 1, state media reported.
TTFC will offer the shares on the Hochiminh Securities Exchange at a starting price of VND75,000 each, said Vo Huu Tuan, director of the HCM City branch of Bao Viet Securities Company that provides consultancy to Truong Thanh.
The proceeds will be used to increase TTFC’s registered capital to VND150 billion (US$9.4 million) from the current VND100 billion and investing in its production and expansion.
The company plans to list its shares on HOSE by the end of this year, said chairman and general director Vo Truong Thanh.
In partnership with foreign strategic partners such as Aureos South East Asia Managers Ltd, VinaCapital’s Viet Nam Opportunity Fund and Deutsche Asset Management, Truong Thanh hopes to list its shares overseas.
In 2006, TTFC grossed revenue of VND326 billion, up 191.7 per cent on year. It expects net profit of VND65 billion this year and VND100 billion in 2008.
Vietnamese furniture processing and exporting companies are estimated to post stable growth rate of nearly 50 per cent a year on average, with wooden furniture present all over the world. (VNA)
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