Initially, there will be 6 HCMC-based water supply enterprises to issue shares through IPO (Initial Public Offering):
- Cho Lon Water Supply Joint-stock Company (Cho Lon WS)
- Phu Hoa Tan Water Supply Joint-stock Company (Phu Hoa Tan WS)
- Gia Dinh Water Supply Joint-stock Company (Gia Dinh WS)
- Thu Duc Water Supply Joint-stock Company (Thu Duc WS)
- Ben Thanh Water Supply Joint-stock Company (Ben Thanh WS)
- Nha Be Water Supply Joint-stock Company (Nha Be WS)
Their main businesses are managing and developing the water supply system; providing safe water for consuming and manufacturing; consulting on water supply projects, civil and industrial construction projects. The state still owns at least 51% of these companies’ total shares.
|Investors find out about public auction at EABS. (Photo: T.C)|
These are the first 6 of the total 8 subsidiaries of Saigon Water Supply Corporation (Sawaco), which were approved to change into joint-stock companies.
Sawaco is the sole provider of safe water for Ho Chi Minh City, a densely populated and important economic center which has the highest demand in safe water amongst provinces. This guarantees the stability and growth of Sawaco in the coming years.
Initially, Sawaco will support the selling price so that the equitized companies can sustains the dividend rates of 10 - 12% per year. After 1 – 2 years, these companies can negotiate with Sawaco about the long-term price based on the difference between inlets and outlets, cost-cutting and waste-reduction.
Despite their high interest, foreign investors have not been allowed to take part in this issuance yet. The total shares of 6 companies in this offering reached 28 million shares with the face value of VND 10.000/share and the auction price will start at VND 10.500/share.
“Currently foreign investors cannot participate in the auction and domestic investors can take the chance to utilize their own long-term idle money. Water supply industry is known for it stability and the dividend rate are higher than banks’ interest rate. This is really a safe bet for investors,” said Mr. Bui Viet, Director of East Asia Joint-stock Commercial Bank Securities (EABS) - the consultant of the 6 companies’ equitization process and this offering.
Time of auction
Place of auction
Cho Lon WS
+ HCMC Securities Trading Center (VSE)
+ Ha Noi Securities Trading Center (HASTC)
Phu Hoa Tan WS
Gia Dinh WS
Thu Duc WS
Ben Thanh WS
Nha Be WS
(*): The face value of VND 10,000 per share and the auction price will start at VND 10,500 per share.
Electricity of Viet Nam to Sell VND350 Billion in Bonds