The company will reduce the cap from 49 to 46 percent, HoSE said in a recent statement. The three point reduction comes after Vinamilk committed 3 percent of its foreign-owned stock to the Singapore Depository Centre as part of an overseas share-listing agreement.

Under the terms of the State Securities Commission’s approval for Vinamilk to list shares overseas, Vinamilk is only allowed to list overseas a quantity of shares equal to 5 percent of the company’s charter capital at the time of issuance.

The shares will be deposited at the Singapore Depository Centre. As per the agreement, the Singapore Depository Centre will be able to hold shares worth up to 3 percent of Vinamilk’s charter capital after the company begins listing shares on the Singapore Stock Exchange.

Vinamilk is one of the first domestic enterprises approved to list shares overseas in the 2008-09 period.

The corporation plans to issues 8.85 million shares overseas, worth a total of VND88.52 billion, it said in its proposal statement to the HoSE.

Mai Kieu Lien, general director of Vinamilk, said that the listing overseas would help the company mobilise more capital for its projects, as well as to expand its business worldwide in 2008.

She pledged to carry out the listing as soon as possible, right after the company has completed all legal procedures.

Vinamilk on January 4 closed downed by 1.22 percent to VND162,000, with 98,260 units traded.