Vietnam sells shares of farm machinery company


VEAM Corporation, one of the biggest companies owned by the Ministry of Industry and Trade in Vietnam, is set to sell a 49% stake starting this month. Source: Thanh Nien News

The Vietnam Engine and Agricultural Machinery Corporation, as it is formally known, will auction more than 167 million shares, or a 12.57% stake, in an initial public offering August 29.

With a starting price of VND14,290 (62.7 US cents) per share, the auction is expected to raise at least VND2.38 trillion ($104.65 million).

After that VEAM will sell 478 million shares, or 36%, to strategic partners, according to media reports.

The corporation currently has stakes in 20 companies, including 30% in Honda Vietnam, 25% in Ford Vietnam and 20% in Toyota Vietnam.

It reported a net profit of more than VND857 billion (US$37.62 million) in 2014, a five-fold increase from 2013.