Vietnam's Largest State-Owned Coffee Company Plans 2018 IPOBy
Government plans to reduce stake by 35 percent to 65 percent
Vietnam National Coffee to sell shares in parent and units
Vietnam National Coffee Corp., the nation’s largest state-owned robusta producer, is planning an initial public offering next year as the government reduces its stake in the company.
The IPO will include Vinacafe and 18 units, deputy director general Nguyen Van Minh, said in an interview at a coffee festival in the Central Highland’s city of Buon Ma Thuot. The government also plans to reduce its stake in seven other subsidiaries by 35 percent in separate IPOs at an undetermined time, he said. The process valuing the company is expected to start in July, Minh said.
Vietnam is the world’s largest producer of robusta beans, used in instant coffee. Annual coffee exports are estimated at $2.5 billion to $3 billion, according to Do Ha Nam, vice head of Vietnam Coffee Cocoa Association and chairman of Intimex Group, the country’s top exporter.
Vinacafe forecasts revenue this year of between 4 trillion dong and 4.5 trillion dong ($175 million to $197 million), Minh said. That compares with 3 trillion dong in 2016. It expects to export between 80,000 tons and 100,000 tons of beans from next year, up from 50,000 tons in 2017, he said. The company shipped 22,000 tons of last year.