Vinatex delays IPO again

Vinatex logoFrom Jul 22 to September 30. In a previous move in 2013, Vinatex pushed its IPO date back by a year to July 22, 2014.

The reason, according to Vinatex, is that potential investors did not have enough time between roadshows and the deadline for receiving bids to effectively research Vinatex and come to a decision.

Therefore, to give potential investors more time, Vinatex asked for and received permission from the prime minister to push the IPO to September 30.

Vinatex’s revenues are reliant on the import of input materials. In 2013 the firms’ revenue was $2.9 billion, but its imports came to $1.5 billion. The FTAs’ requirements concerning rule of origin may not be satisfied by company’s current operating structure.

Another factor contributing to investors’ wariness regarding Vinatex shares is the parent company’s decreasing revenue and net profits, which were VND21.989 trillion ($1.04 billion) and VND833 billion ($39.5 million) in 2011, VND13.526 trillion ($641 million) and VND717 billion ($34 million) in 2012 and VND11.608 trillion ($550 million) and VND272 billion ($12.9 million) in 2013, respectively.

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