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STK to sell 3m new shares at IPO
Century Synthetic Fiber Corporation (STK) is planning to offer three million new shares in its initial public offering (IPO) at the HCM City Stock Exchange on December 9.
At the same time, Red River Holding, the STK majority shareholder, has been allowed to sell two million STK shares over the counter to the public.
STK officials said each share, worth VND10,000 (US$0.46), was expected to be offered at the starting price of VND18,000 ($0.80), and investors may register to purchase no later than 3 p.m. on December 5.
According to STK, the IPO aims to raise capital for the third phase of its VND729-billion ($34.2-million) expansion at Trang Bang Plant in southern Tay Ninh Province which began last May.
Once completed, it will provide an additional 30,000 tonnes of fiber, raising the company's total capacity to more than 52,000 tonnes per year.
STK expects to operate at 50-per cent of capacity by the third quarter of 2015 and at full capacity by the first quarter of 2016.
Earlier, Dang Trieu Hoa, STK board chairman and managing director, said his company's major customers, accounting for 70 cent of company revenue, were based in Europe and Asia.
The buyers include fabric enterprises that provide materials for big brands such as Nike, Adidas, Uniqlo and Decathlon, as well as Puma, Columbia and Guess.
The plant's increased production is expected to meet the rising demand of domestic garment and textile companies and foreign fabric enterprises in Viet Nam.
With its continuing expansion in previous years, STK has achieved impressive growth. From 2008 to 2013, the company's average annual revenues increased by 39 per cent and its average annual profits, by 65 per cent.
Trang Bang Plant's expansion is expected to increase company revenues by 20 per cent to VND2.275 trillion ($106.8 million) and profits after tax by 19 per cent to VND132 billion ($6.19 million).
After the IPO and the release of its audit report for 2014, STK will register for listing at the HCM City Stock Exchange in the second quarter of 2015.
bizhub
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