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HANOI, June 8 Vietnam's leading infrastructure
company Song Da Corp has secured the prime minister's approval
to conduct an initial public offering in 2019, the government
website said on Thursday.
Communist Vietnam has slowly been pushing its state-owned
enterprises to privatise to boost performance. The process has
gained momentum since a new government took office last year.
The firm, which has registered capital of 4.5 trillion dong
($198.34 million), plans to sell a 30 percent stake to strategic
partners and 18.82 percent to the public in the IPO, a statement
on the government website said.
The government by the end of 2019 will lower its stake to 51
percent and will reduce it to below 50 percent the following
The IPO prices will be decided by the construction minister
who will also set the criterion for choosing strategic partners.
Song Da Corp is the main contractor for most hydro power
projects in Vietnam and has also built major infrastructure
including tunnels, highways and factories.
Its 2016 pre-tax profit was 370 billion dong, down 35.2
percent from a year earlier.
(Reporting by My Pham; editing by Jason Neely)