Vissan IPO attracts 142 investors

A Vissan worker checking pork (Source: VNA)

More than 140 investors from local and overseas markets will participate in the initial public offering (IPO) of the Vietnam Meat Industries Limited Company (Vissan) on March 7.

Vissan will sell more than 11.3 million shares at the IPO, with a starting price of 17,000 VND each. The company expects to earn at least 192 billion VND (8.64 million USD) from the IPO.

The 142 investors comprise 123 local individuals, six local companies, six foreign individuals, and seven foreign firms. They have registered to buy 63.6 million shares at the IPO, more than five times the number of shares offered by Vissan.

The number of shares being offered at the IPO is equal to 14 percent of the company's capital after privatisation, which is expected to reach 809 billion VND.

Vissan will sell the shares to only three investors at the coming IPO, so that they become the company's strategic investors.

According to Vissan, a strategic investor should have equity of 1 trillion VND as of the end of 2015, should not have suffered any losses during the 2012-14 period, and should not have suffered any accumulated loss as of the end of September 2015.

A strategic investor should also have had at least five years of operations experience, working in the same industries as Vissan, and be capable of working with Vissan to create a food chain called 3F (Feed-Farm-Food) to provide safe food to consumers.

CJ Corporation plans to improve Vissan's brand, not only in the domestic market but also abroad, if it becomes one of Vissan's three strategic investors.

Vissan is now one of Vietnam's leading corporations in the production of food, fresh meat, frozen meat, and meat products. Vissan was founded in 1970 as a subsidiary of the State-owned Sai Gon Trading Corporation (SATRA).

VNA