Hanoi willing to slash ownership in Vinalines in bid to drum up IPO support

Hanoi willing to slash ownership in Vinalines in bid to drum up IPO support

Hanoi: In an unprecedented move for a large Vietnamese state-owned enterprise (SOE), Hanoi has said it is willing to hold just 36% of the equity of Vietnam National Shipping Lines (Vinalines) in a bid to get investors onboard and help restructure the ailing flagship carrier of the Southeast Asian nation.

36% of chartered capital is the lowest ever suggested state ownership ratio in a large corporation like Vinalines, local media report.
The drop in ownership ratio is a massive one – Hanoi having earlier suggested it would retain 75% of the chartered capital, after a planned equitisation.

The government has become aware that investor interest in the line was very limited unless it slashed its ownership ratio.
Vinalines is lining up an initial public offering, one of many debt-laden SOEs that Hanoi has demanded to list in recent months.

Vinalines is the Vietnam’s largest shipping line with 109 vessels and total tonnage of 2.5m dwt.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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