Ceramic maker Viglacera Corporation (VGC) will put up 120 million shares for sale, equivalent to 39 per cent of total outstanding shares, on the Ha Noi Stock Exchange on May 29. The starting price is set at VND12,300 (54 US cents) per share.
Viglacera is expected to collect nearly VND1.5 trillion ($65.8 million) from the public sale, which will be mainly used to invest in the expansion of the Yen Phong Industrial Park and develop the ultra-white float glass manufacturing factory and sanitary ware plant Viglacera My Xuan in Ba Ria-Vung Tau Province.
Viglacera has 307 million outstanding shares, equivalent to charter capital of VND3.07 trillion. The company’s charter capital will increase to nearly VND4.73 trillion following the sale.
It is listing 65 million shares on the Ha Noi Stock Exchange, some 39 per cent of its total outstanding shares, at a price of some VND15,500 per share.
Viglacera holds 40 per cent of the market share of building glass, 12 per cent of sanitary ware, 5 per cent of ceramic tiles and 3 per cent of bricks, according to a report by the Bao Viet Securities Joint Stock Company (BVSC).
The construction materials company owns some 390ha of urban land and 10 industrial parks with total area of 3,560ha in six provinces, mainly in the north, which have attracted 200 enterprises.
There could be a possible dilution of the share price after the sale in the short term, but this will be offset by the company’s strong potential for growth following investment, BVSC’s report said.
Viglacera reported profit of VND242 billion in the first quarter, surpassing its quarterly target by 69 per cent. It aims to earn total pre-tax profit of VND888 billion this year, a rise of 16 per cent year-on-year.