State giants mull floating in 2008

Saturday, April 12, 2008
State giants mull floating in 2008
Many investors had ever been eager to participate into bidding such large-scaled businesses as Viet Nam Bank for Foreign Trade (Vietcombank), PetroVietnam Financial Corp (PVFC), Bao Viet Finance and Insurance Corp, Viet Nam Construction Import and Export Corp (Vinaconex) with a hope of gaining big profits. However, the stock market has been presenting a gloomy move, disappointing many people. How will the mentioned businesses realise its listing plans and whether will 2008 see listing of many giants in the stock market?
According information of Vietcombank as well as announcements of the bank's officials, the route for enhancing liquidity of Vietcombank shares is very clear. Namely, the bank will hold a shareholder's meeting in April and list shares in the HCM City Stock Exchange in June. While there has not been yet any foreign strategic investor eyeing Vietcombank, Nguyen Hoa binh, Vietcombank's executive chair, talked with Dau Tu Chung Khoan newspaper in February that in case Vietcombank's shareholder structure fails to meet listing requirements in the HCM City floor, Vietcombank will ask for permission from the prime minister for listing its shares as a exceptional case. Meanwhile, Nguyen Thu Ha, vice general director of Vietcombank, said that the bank does not forget what it has said. Vietcombank is preparing necessary documents as well as procedures for a shareholder's meeting slated for April. Vietcombank's listing might fail to follow its scheme, however, Vietcombank is asking for instructions from the government. Regarding seeking foreign partners, Ha said, Vietcombank is resuming negotiations with two big financial organisations. Nevertheless, movements in the stock market and difficulties of the economy seemed not to favour Vietcombank.
Another large-scaled financial institution, Bao Viet Finance and Insurance Group, also planned to list shares in 2008, which had been approved at the first shareholder's meeting of the group at the end of 2007. According to Le Quang Binh, Bao Viet's executive chair, going on the bourse will not be difficult. What is important is selecting proper time because the group has signed a cooperation deal with the HCM City Stock Exchange. Currently, the group's management board is considering different proposals to draw out specific plans.
Ahead of the shareholder's meeting to be held on April 17, Vinaconex has also discussed listing plans in 2008, which Vinaconex will ask for opinions from shareholders at the meeting.. As scheduled, Vinaconex will raise its chartered capital from two trillion dong to three trillion dong, a large portion of which will be set aside for foreign strategic investors through consultancy of Credit Suisse. Vinaconex's officials said that the company itself has never promised to list shares in 2007 but that was in fact decisions and wishes of the Construction Ministry, the management body of the company before it was equitised. However, listing now becomes necessary requirements of the company. (DTCK)