State-owned Vietnam Tea Corp (Vinatea) will be listed publicly in September following an IPO expected to value the new company at $17 million.
Vietnam earns $227 million annually from tea exports, ranking fifth globally. Hanoi-based Vinatea is Vietnam’s largest tea exporter. Vietnam shipped 132,100 metric tons in 2014, down 6.3% from the previous year. Revenue was down 1% compared to 2013.
The government is attempting to accelerate reform of the state sector at the request of prime minister Nguyen Tan Dung who cited low profitability and high levels of non-performing loans. A stake of 63.7% is available to strategic investors with 4.4% reserved for employees. Thong Nhat Production and Investment Co., has indicated it will buy 63.74% of the shares. About one-third (31.2%) of the shares, valued at $5.36 million, are to be sold to investors including foreign investors.
Vinacafe, the state owned coffee export company, was privatized in 2011. Vinacafe and Vinatea are listed on the Hochiminh Stock Exchange (HOSE).