Foreign ownership increase proposed for big IPOs

The State Securities Commission (SSC) is expected to submit the Prime Minister a proposal to increase foreign ownership rate at a public company in Vietnam to 60 percent from the current 49 percent in October this year. This aims to make room for big Initial Office Offerings (IPOs) by over 300 businesses this year.

Low-cost carrier Vietjet Air might launch its IPO this year (Photo: Financial Investment Edition/SGGP)

According to the Government’s plan, a total of 432 state-own enterprises (SOEs) will be equalized in the phase of 2014-2015. Only 120 had conducted their IPOs last year meaning 312 others will have to launch the IPO this year.

They will include big IPOs by state-owned groups and corporations such as Vietnam National Shipping Lines, Vietnam Railways and Vietnam Shipbuilding Industry Corporation. Besides the State Capital Investment Corporation (SCIC) will continue speeding up capital withdrawal at state businesses.

These are considered as an opportunity to attract foreign investors. However foreign ownership rate at a public company is capped at only 49 percent, which might indirectly cause difficulties for the SOEs' equitization progress.

SSC’s Market Development Department is reviewing the Government’s Decree 58 on foreign ownership at public companies and stock companies to make proposals to change unreasonable regulations, said the department head Nguyen Son.

By Hai Ho – Translated by Hai Mien

Other news

Most view

185 leading domestic & in't enterprises join in VN ETE 2018

185 leading domestic & in't enterprises join in VN ETE 2018

The Vietnam Exhibition of Electrical Technology and Equipment (Vietnam ETE 2018) and the Exhibition of Products, Technologies for Energy Saving and Green Power (ENERTEC EXPO 2018) yesterday kicked off in HCMC’s Saigon Exhibition Convention Center in district 7.

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

SAS profits VND 118bln

The Southern Airports Service Joint Stock Company (Sasco) which is listed under code SAS on the Unlisted Public Company Market (UPCoM), announced its second quarter’s financial report with net revenue at VND 634.5billion, an increase of 14 percent compared to last year.