Representatives of HOSE and auction agents conduct the share auction of STK – PHOTO: THU NGUYET

HCMC – Century Synthetic Fiber Corporation (STK) sold five million shares at an average price of VND21,124 each at its initial public offering (IPO) Tuesday, well above the starting price of VND18,000.

The enterprise offered three million shares for public auction at the Hochiminh Stock Exchange (HOSE). Red River Holding, its foreign shareholder, also offloaded two million shares.

Six organizations and 21 individuals snapped up the five million shares and foreigners bid for 0.18% of the total put up for sale.

With winning prices ranging from VND22,700 to VND25,000 each share, the auction brought in over VND120.6 billion. Of the figure, STK got around VND70 billion.

Earlier, the company expected to mobilize VND54-56 billion to fund its factory expansion in Trang Bang District, Tay Ninh Province. The project has a total investment of VND729 billion. Once completed, the factory will have an annual capacity of 52,000 tons compared to the current 37,000 tons.

The project will start running at 50% capacity in the third quarter of 2015 and at full steam in the first quarter of 2016.

The corporation, which is capitalized at VND393 billion, has plans to list on HOSE in the second quarter of 2015. It plans an annual dividend payment at 15% for shareholders in both cash and stock.

Tran Thu
Thursday,  Dec 11,2014,10:42 (GMT+7)

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