Song Da Corporation modifies IPO plan

Announcing its latest plan, the corporation said the new one incorporated some changes made in accordance with the Prime Minister’s instruction on assessing the company’s value and adjusting initial public offerings.

In mid-June this year, Song Da Corporation secured the Prime Minister approval to sell 30% of its capital to strategic investors and 18.82% to the public in 2019.

The reasons for the corporation’s cancellation of offerings to strategic investors have not been disclosed.

The 56-year-old corporation is one of Vietnam’s leading infrastructure companies with a charter capital of VND4.5 trillion (US$198.2 million).

Under the equitisation plan, the Government will retain 51% stake in the firm until the end of 2019, then reduce it to below 50% the following year.

The Ministry of Construction has been assigned to decide the IPO prices, the criteria for selecting strategic investors as well as the amount of shares offered to them.

The corporation is set to finalise its equitisation plan by the end of this year.

According to the company’s audited 2016 financial report, it had total assets of VND31.9 trillion by the end of last year. Its owner’s equity was VND7.83 trillion and total debts amounted to nearly VND24.1 trillion, with short and long term loans amounting to VND17.7 trillion.

The infrastructure company posted consolidated revenues of VND9.97 trillion in 2016 and net profit of the parent company was VND359 billion in 2016, down 37% from the previous year.

Song Da Corporation is the main contractor for most hydropower projects in Vietnam. It is also involved in some major infrastructure projects including tunnels, highways and factories. 

It plans to divest from several hydroelectricity companies in October this year, including the Ho Bon Hydropower Joint Stock Company, Nam Muc Hydropower JSC and Southern Power Investment & Development JSC.