Vinapharm IPO announced to June 22
Vietnam’s largest pharmaceutical, Vietnam Pharmaceutical Corporation (Vinapharm), will launch its initial pubic offering (IPO) on the Hanoi Stock Exchange on June 22, offering 42.5 million shares equalling 18% of the corporation’s chartered capital.
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The Ministry of Health (MoH) will retain the remaining 154 million shares, equalling 65% of Vinapharm’s chartered capital.
After the IPO, the corporation will invest VND3 trillion (US$133.7 million) to develop nine projects, including pharmaceutical production and processing plants, warehouses and logistics systems, a pharmaceutical cultivation area, and a research and development centre, in the next ten years.
Vinapharm was established in 1971 and was transformed into a single member joint stock company in 2010.
The corporation specialises in trading pharmaceutical products, functional foods, and medical equipment. In addition, the corporation invested in four subsidiaries and 11 joint-venture companies, with a total capital of VND1.547 trillion (US$68.9 million).
As of the end of 2015, the corporation had a total asset value of VND6.785 trillion (US$302.5 million). In 2015, its revenue reached VND7.281 trillion (US$324.6 million) with a net profit of VND350 billion (US$15.6 million). The revenue is expected to increase by an average of 70% per year during the 2016-2020 period.
Vinapharm is currently the owner of prime real estates in Hanoi and Ho Chi Minh City, with 3,280 square metres on Lang Ha street and 2,670sq.m on Nguyen Huy Tuong street. It also has a sizeable land on Dien Bien Phu street in Ho Chi Minh City.
