State-run Vietnam Rubber Group (VRG) has approved a plan to sell 25 % of the company in an initial public offering, worth an estimated 12.8 billion dong (US$563 million).
The sale is part of Vietnam’s plans to trim stakes in state-owned enterprises, which picked up pace after a new government took office last year. The government aims to sell holdings in 135 state-owned companies in 2017, it said in late August.
VRG plans to sell 11.88 % of the company to the public and another 11.88 % to a strategic investor, according to its share sale plan published on the company’s website. The group has not chosen a strategic investor yet.
The company also plans to sell 1.21 and 0.03 % to its employees and trade union, respectively. Vietnam’s government would own the remaining 75 % of the shares.