Last update: 11:32 | 13/11/2017
Viettel Global JSC (a subsidiary of Viettel Group), plans to list 2.24 million shares on the Unlisted Public Company Market (UpCOM), according to newswire Vnexpress.
With this sale, Viettel Global will take over Airports Corporation of Vietnam in market capitalisation
With these shares, Viettel Global will overcome Airports Corporation of Vietnam as the enterprise with the largest market capitalisation on UpCOM.
However, the specific capitalisation and the date of listing have yet to be disclosed.
Established in late 2007 with the chartered capital of VND960 billion ($42.3 million), Viettel Global specialises in investing and developing infrastructure and telecommunication services abroad. At present, Viettel Group owns 98.68 per cent stake in the company.
Viettel Global is currently one of the biggest Vietnamese overseas investors. It now operates nine telecommunications companies in nine countries across Asia, Africa, and Asia, representing a total population of over 175 million people, 13 million of whom are Viettel customers.
According to the company’s financial report, in the first six months of this year, the company earned VND14 trillion ($616.4 million) in revenue from its nine international markets, up 25 per cent on-year. The increase in revenue came from 4G services, e-wallet, as well as information-technology projects serving enterprises and the governments of host countries. Besides, exchange rate differences also contributed to increasing the company’s total revenue.
However, along with the massive capitalisation and revenue, the company suffers from a massive debt volume. Notably, as of June 30, it bore a total debt of VND29.98 trillion ($1.32 billion), VND13.01 trillion ($572.8 million) of which is short-term loans from banks. Furthermore, as of June 30, it also reported an accumulated loss of VND2.3 trillion ($101.3 million).
Previously, Viettel Construction JSC, a subsidiary of Viettel Group, received permission to list 47.1 million shares on UpCOM.
In April 2010, the company put 6.15 million shares on sale at its initial public offering (IPO) with the initial price of VND10,000 ($0.44) apiece. The entire share volume on offer was sold at the average price of VND14,484 ($0.65). The company started operations under the JSC model in June 2010 with the initial chartered capital of VND238 billion ($10.4 million), 72 per cent of which was owned by Viettel Group.
After five years, the company’s chartered capital increased to VND471 billion ($20.6 million). As of September 7, 2017, Viettel Group held a 73.2 per cent stake in the company.
Viettel Construction JSC has constructed the telecommunications infrastructure of Viettel Group with about 50,000 base transceiver stations (BTS) and about 140,000 kilometres of optical fibre in Vietnam, Cambodia, Laos, Myanmar, Haiti, Peru, Mozambique, Cameroon, Burundi, and Tanzania, among others.