The Vietnamese government has approved the IPO plans of state-run Vietnam National Shipping Lines (Vinalines) as part of its efforts to push privatisation among state-owned entities.
The IPO, which is expected in September, will see the Vietnamese government sell around 35% equity in Vinalines to private investors.
According to the company’s IPO plan, around 20% in Vinalines will be offered for sale on the Hanoi Stock Exchange and around 14.8% will be sold to strategic investors.
Following the sale, the government will still be the controlling shareholder of Vinalines with a 65% stake.
In 2012, Vinalines was hit with a debt crisis and many senior executives were arrested for corruption. The company later managed to get back on track through a restructuring in which it sold numerous fleet, port and shipyard assets. It has mooted an IPO for many years.