News Room - Steel Industry

Posted on 24 Nov 2008

Vietnam's top steel sheet maker to raise US$138.5m

Top Vietnamese steel sheet maker Hoa Sen Group is expected to raise at least US$138.5 million early next month when its shares debut on the country's main stock market, the exchange said on Friday. Hoa Sen Group, based in the southern province of Binh Duong outside HCM City, would list all 57 million shares on December 5 and have a starting price of 40,000 dong (US$2.43), the Ho Chi Minh Stock Exchange said.

 

Shares in Hoa Sen Group were last traded on the unregulated markets in early October at 26,000-30,000 dong each, down 38% from late August. As such, the company was valued at US$104 million.

 

Hoa Sen Group said it holds about one fifth of the domestic steel sheet market, making it the country's largest producer of the product.

 

Hoa Sen has said it made a net profit of 215 billion dong in the first half of this year, 42% above the earnings for the whole of last year.

 

The Ho Chi Minh Stock Exchange, Southeast Asia's worst performer this year, dropped 2.08% to close at 318.96 on Friday. It has fallen 66% so far this year.

 

The exchange now trades shares in 166 companies and four fund units with a total market capitalisation of US$10 billion.