Vietnam Biggest Brewery to Go ahead with IPO
Vietnam's leading state-owned brewer Hanoi Beer Alcohol Beverages Corporation (Habeco) said it will still carry out its initial public offering (IPO) March 27 despite the recent bear market.
Under the plan, Habeco will auction 34.77 million shares at a starting price of VND50,000 each.
The IPO will be a fizzer as a large number of individual investors will not attend the auction, securities companies said, explaining that they have been not interested in IPOs, especially after those of Vietcombank and Sabeco, and will buy shares.
The Danish beer company Carlsberg will buy about 10 per cent of stake in the local brewer as its strategic partner.
“Carlsberg pledged to buy all unsold shares after the auction at the initial price,” said Habeco’s General Director Nguyen Van Viet. It proves that the price is attractive to strategic foreign investors, Viet noted.
The shares are estimated to be bought at between VND50,000 and VND52,000 each, analysts said.
The Ho Chi Minh Stock Exchange’s VN-Index has lost 23 per cent of its value over the past one week and 41 per cent since the beginning of this year, the second worst performance since 2001. (Thanh Nien Online)
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