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Steel producer to list shares on Tuesday
Steel Producer Tien Len will list 54 million shares on the HCM City Stock Exchange next Tuesday, making it the fifth steel producer with shares listed on the southern bourse.
The shares would be offered at an opening price of VND30,000 and would be allowed to fluctuate by plus-or-minus 20 percent during the first day of trading, according to the prospectus.
The offer price was calculated based on the company's price-to-earnings ratio and potential profitability, as well as the value of its shares on the over-the-counter market, according to Tien Len Chairman Nguyen Manh Ha.
Bao Viet Securities Company has worked with the company on calculating the offer price, in addition to serving as the listing consultant, Ha said.
Bao Viet Securities Company, Phuc Tien Trade and Manufacturing Company and Royal International Securities Company are currently the three leading shareholders in Tien Len, which has charter capital of VND540 billion (US$28.4 million). It plans to increase that figure to VND660 billion ($34.7 million) this year by issuing 12 million shares to strategic partners at a price of VND25,000 each.
Analysts at BETA Securities Company yesterday said that price represented a good value, with their own analysis suggesting that the shares were worth around VND40-51,000 per share.
Tien Len had a number of projects ready to be kicked off this year which had a likelihood of contributing to stronger future business performance, the analysts said, and steel prices and demand were forecasted to rise this year, helping boosting business results in the future.
Tien Len reported earnings of VND5.17 trillion ($272.1 million) and posted a profit of VND187 billion ($9.8 million) in 2009. It has targeted earnings of VND10.4 trillion (US$547.4 million) and a profit of VND324 billion ($17.05 million) this year.
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