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SCIC to sell all shares of Cienco 5
The State Capital Investment Corporation (SCIC) plans to divest from Civil Engineering Construction Corporation No 5 (Cienco 5) on March 20.
According to the Ha Noi Stock Exchange, SCIC will sell its entire 40 per cent stake in Cienco 5 – as many as 17.56 million shares – at an initial price of no less than VND19,300 (US$0.8) per share. SCIC expects to collect more than VND339 billion for the shares.
As of October 2019, Cienco 5 has 84 shareholders including three major shareholders of SCIC, Hai Phat Investment and Hai Phat Capital Investment.
Established in 1995 on the basis of organisational restructuring in the transportation industry, the firm went public in 2004 with its initial public offering (IPO). At that time, Cienco 5 could only offload 1.9 million shares in the total registered 14.2 million shares offered at VND10,025 each.
Mainly working in local infrastructure, Cienco 5 has built big projects such as Thanh Ha new urban area, Cua Dai bridge, Ho Chi Minh road, Sai Gon-Trung Luong highway, Trans-Asia road, Cau Gie-Ninh Binh expressway and the Da Nang - Quang Ngai Highway.
However, compared to the working experience and big projects it has carried out, the firm’s business results have not been good at all. By the end of 2018, the firm’s yoy revenue decreased by 44 per cent to close at VND275 billion. It also lost 67 per cent in yoy profit after tax which closed at VND307 million.
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