Vietnam Gov’t to Sell 49% Stake in Construction Giant Song Da at IPO

Tuan Minh

01:11 10/06/2017

BizLIVE - The share disposal is part of the government’s effort to accelerate the privatization process of state assets.

Vietnam Gov’t to Sell 49% Stake in Construction Giant Song Da at IPO

The headquarters of Song Da Corp in Hanoi. Photo:

The Vietnamese government will dispose of a 49% stake in leading construction company Song Da Corp at the latter’s upcoming initial public offering (IPO) to cut the state holding to as low as 51% through 2019
According to a prime minister-approved privatization plan, the government will sell a 30% stake to strategic investors and another 18.82% to the public at the IPO, the government said on its website. The IPO timing is not clarified.
The firm will have a registered capital of 4.5 trillion dong ($198 million), according to the plan. The capital base ranks it among the biggest constructors in Vietnam, along with Vinaconex and FLC Faros.
The government holding will be slashed to below 50% in 2020, the government added.
The construction minister will decide on the IPO prices as well as criteria for choosing strategic partners.
Song Da Corp is the main contractor for many hydro power projects in Vietnam and has also participated in major infrastructure projects related to tunnels, highways and factories.
The company earned a pre-tax profit of 370 billion dong ($16.3 million) in 2016 on revenue of 13.6 trillion dong ($599 million).


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