Accordingly, SCIC plans to offer a competitive offering of 44,211,900 Vocarimex shares, equivalent to 36.3% of capital, on November 4 at the Hanoi Stock Exchange (HNX).
With the starting price of 22,690 dong / share, if the deal happens as expected, SCIC will earn more than 1,000 billion dong.
Vocarimex is one of the giants in the cooking oil industry when directly owning edible oil brands such as Voca, Soby, Ruby, Sun Go and holds 24% capital in Cai Lan Vegetable Oil Co., Ltd. ( Calofic) – owner of cult brands such as Neptune, Simply, Meizan and Cai Lan.
Vocarimex is also a major shareholder of Tuong An Vegetable Oil Joint Stock Company (26.5% capital), Kido Nha Be Cooking Oil Co., Ltd of Marvela cooking oil brand (49% capital), LG Cosmetics Co., Ltd. Vina (40% capital) and Vegetable Oil Packaging Joint Stock Company (51% capital).
In addition, Vocarimex also owns a series of real estate with great value stretching from Hanoi to Ho Chi Minh City. Ho Chi Minh City, located on prime locations with a total area of 37,800 m2 such as: Lot 8 Cat Linh (Hanoi) with an area of 334 m2, land lot 58 Nguyen Binh Khiem (District 1, Ho Chi Minh City) wide 3,245 m2, plot of land 509 m2 at 138-142 Hai Ba Trung (District 1, HCMC).
In recent years, Vocarimex’s business situation has shown signs of slowing down, the indicators of revenue and profit are in a decreasing trend. Compared with the success of 2016 when Vocarimex recorded a total revenue of over 5,571 billion dong, after-tax profit of 346 billion dong, by 2019, this number decreased to 2,548 billion dong and 243 billion dong, respectively. 55% of revenue and 30% of profit).
In the first half of 2020, Vocarimex achieved a revenue of 1,372 billion VND, an increase of 4% compared to the same period in 2019. Thanks to the reduced cost of goods sold, the company earned a gross profit of 33 billion VND, twice as much as with the same period. Gross profit margin increased from 1.1% to 2.4%.
During the period, Vocarimex reached 148 billion VND in financial revenue (up 25 billion VND over the same period) while streamlining financial expenses, selling expenses and administrative expenses (down 20 billion compared to the same period last year). However, Vocarimex lost 23 billion dong in associates, while the same period profit was 29 billion dong.
This makes Vocarimex only 110 billion net profit, up 11% after 6 months of operation. Basic earnings per share (EPS) increased from 842 points to 906 points.
As of June 30, 2020, the total assets of Vocarimex reached over 2,739 billion, up 4.4% from the beginning of the year. The debt / equity ratio is 0.3.
Earlier in August 2019, SCIC used to conduct a divestment auction in Vocarimex with a starting price of 22,300 VND / share, but it was completely sluggish when there were no investors participating. The market price was only 15,600 VND / share, equivalent to 70% of the starting price. Observers said that in the context of the lack of prosperity in Vocarimex’s business picture, the starting price of SCIC did not attract the attention of investors.
However, at this divestment, the market is reacting quite positively right after SCIC’s announcement (October 12). As of 14:00 on October 13, VOC shares increased sharply by 10.6% to 22,900 VND / share, exceeding the starting price offered by SCIC.
Source: vietnamfinance.vn – Translated by fintel.vn