VietNamNet Bridge – Ben Thanh Tourist Service Company sold 5.93 million shares to investors at its initial public offering (IPO) last week at the lowest winning bid of VND21,000 each, double the starting price of VND10,500.

HOSE staff handle the IPO session of Ben Thanh Tourist on December 9

Four investors, including two organizations and two individuals, were winning bidders of the IPO auction held at the Hochiminh Stock Exchange (HOSE), snapping up all the shares at a total value of VND127.4 billion.

Earlier, up to 47 investors bid for over 49.2 million shares while the travel firm offered just 5.93 million shares, or a 23.73% stake. It has total chartered capital of VND250 billion.

The company will float its shares on the UPCoM, the market for unlisted public companies, 90 days after the IPO. It has plans to list on the stock market in 2018.

Hoang Tam Hoa, general director of Ben Thanh Group, said after the share auction that it has plans to sell another 23.73% stake to strategic investors at no lower than VND21,000 a share. The shares have been offered to Phan Thanh Trade & Service Co. Ltd. and Viet Real Estate Commercial Joint Stock Company (Vietcomreal).

The State will maintain a 49% stake in the enterprise after the IPO.

However, Ben Thanh Tourist has forecast a fall in profit in the first three years after equitization. It expects to obtain VND21.8 billion in after-tax profit this year, over VND9 billion in 2015, VND12.5 billion in 2016, and VND16.8 billion in 2017 before rising to VND32 billion in 2018.

Hoa said his firm is looking to achieve VND450 billion revenues this year, well below the VND540 billion recorded in 2013. This year, it has focused on core business operations such as travel, real estate service and investment.

Ben Thanh Tourist currently has stakes in 15 enterprises.

SGT/VNN