Taicera IPO set for green light
Taicera IPO set for
Taiwanese-owned granite tile and ceramic producer Taicera will
sell five million shares in November in a move to prepare for listing on
Vietnam�s stock market.
which equal 16.67 per cent of its more than 30 million shares in total, will be
sold to the public, strategic investors and employees, a source from Saigon
Securities Company (SSI), the consultant for the Dong Nai province-based
company, said last week.
More than 3.9
million shares will be sold to the public via auction with the floor price of
VND25,000 ($1.56) per share, with 600,100 shares to strategic investors via
private placement at VND25,000 each and the remainder to its employees at
discount of 30 per cent on the reference auction price.
�The IPO plan
is now under final stage of consideration by the State Securities Commission and
we plan to launch the issuance in November,� said Phung Thi Tan Thanh, a
financial analyst from SSI, who is in charge of Taicera�s listing.
The Dong Nai
province-based Taicera will be the fifth foreign-invested enterprise to float
its shares on the Ho Chi Minh City bourse after Taiwanese-invested firms Taya,
Chang Yih, Full Power and Malaysia�s Interfood.
foreign investors are entitled to register for the share auction, she added.
Taicera CEO Chen Cheng Jen said the issuance would enable Taicera to gain access
to the capital market to raise funds for future expansion, and rationalise
Taicera�s equity structure in order to obtain listing on the Ho Chi Minh City
Securities Trading Centre in accordance with the existing law and regulations of
If the issuance is successful, Taicera�s chartered capital is expected to
increase to more than VND300 billion ($18.75 million) from the current VND250bn
($15.62m). Proceeds from issuing shares will be used to repay for bank loan and
to increase the working capital related to its investment plan on two new
production lines in Dong Nai province�s Go Dau Industrial Park.
Chen said he was looking to mobilise more capital and list on the stock market.
�We want to complete it as soon as possible so that it can trade its shares on
the stock exchange,� he said.
Total expected listing volume is five million shares, accounting for 16.67 per
cent of Taicera�s chartered capital in compliance with the existing regulation
on listing foreign-invested enterprises in which shareholding FIEs will only be
able to list shares they sell through an IPO.
To increase the liquidity for the shares, Taicera has planned to dispose shares
held by founding shareholders after completion of IPO, but specific volume and
disposal date remain undisclosed.
Taicera is a 100 per cent foreign-owned company initially established by 20
founding Taiwanese investors in 1994. It was one of the first six FIEs approved
by the Ministry of Planning and Investment to convert into shareholding status.
Over the past decade of operations, Taicera has increased its total investment
capital more than three times, from $19.5m in 1994 to over $66.1m last year.
Taicera has exported its products to 17 countries over the world, with Taiwan,
Australia, Japan, Singapore, India and Korea being major ones and export revenue
making up over 60 per cent of the total earnings.