Vinh Long to be first rice exporter on VN-index

The Vinh Long Import-Export Co will become the nation’s first rice exporter to make an initial public offering on the HCM City Securities Trading Centre on May 30. The company will issue approximately 1.7 million shares, representing about 37 per cent of the company’s equity of VND45 billion (US$2.8 million), and including 1.35 million shares for foreign investors.

Following the IPO, the State would continue to hold a 51 per cent stake in the company, while employees would hold 11.92 per cent. The Vinh Long Import-Export Co, one of largest enterprises in the southern province of Vinh Long, annually exports about 100,000 tonnes of rice, mostly to the Philippines, Indonesia, Africa and the Middle East.

It has set a target for 2007-09 to diversify into real estate development, as well as to continue to boost its competitive capacity and expand markets for its exports. The company was formed in 1976 to export agricultural products, seafood, handicrafts and garment, as well as to import textiles, equipment and consumer goods. In 2003, the company received approval to diversify into services, fuel wholesaling, and real estate development.

It posted revenues of VND283 billion ($17.7 million) and a net profit of VND2.26 billion ($141,250) in 2006, recovering from losses posted in 2004 and 2005. It predicts revenue of VND356.4 billion in 2007, VND422.4 billion in 2008 and VND480 billion in 2009, and net profits of VND4.32 billion in 2007, VND5.76 billion in 2008 and VND7.2 billion in 2009.

Vietnam News Service