SCIC to sell all shares of Cienco 5

The road connecting Thanh Oai and Hà Đông District in Hà Nội was built by Cienco 5. SCIC wants to sell its 40 per cent stake in the firm on March 20. — Photo ndt

HÀ NỘI — The State Capital Investment Corporation (SCIC) plans to divest from Civil Engineering Construction Corporation No 5 (Cienco 5) on March 20.

According to the Hà Nội Stock Exchange, SCIC will sell its entire 40 per cent stake in Cienco 5 – as many as 17.56 million shares – at an initial price of no less than VNĐ19,300 (US$0.8) per share. SCIC expects to collect more than VNĐ339 billion for the shares.

As of October 2019, Cienco 5 has 84 shareholders including three major shareholders of SCIC, Hải Phát Investment and Hải Phát Capital Investment.

Established in 1995 on the basis of organisational restructuring in the transportation industry, the firm went public in 2004 with its initial public offering (IPO). At that time, Cienco 5 could only offload 1.9 million shares in the total registered 14.2 million shares offered at VNĐ10,025 each.

Mainly working in local infrastructure, Cienco 5 has built big projects such as Thanh Hà new urban area, Cửa Đại bridge, Hồ Chí Minh road, Sài Gòn-Trung Lương highway, Trans-Asia road, Cầu Giẽ-Ninh Bình expressway and the Đà Nẵng - Quảng Ngãi Highway.

However, compared to the working experience and big projects it has carried out, the firm’s business results have not been good at all. By the end of 2018, the firm’s yoy revenue decreased by 44 per cent to close at VNĐ275 billion. It also lost 67 per cent in yoy profit after tax which closed at VNĐ307 million. — VNS