HANOI, Vietman (Reuters) — Vinatex, Vietnam's top textiles manufacturer, on Wednesday said it will take up to three years to list its shares on the stock market after an initial public offering planned for later this month.
In Vietnam, an IPO and listing are two separate processes that can sometimes be years apart.
State-run Vinatex, or Vietnam National Textile and Garment Group, plans to sell shares to fund restructuring and boost profit, in a listing it hopes would coincide with the agreement of the Trans-Pacific Partnership — a 12-nation pact that would cover a third of global trade.
"We will strive to list in three years, and if conditions are favorable — the TPP is signed or better [earnings] ratios are reported — the listing could come faster," Vinatex general director Tran Quang Nghi told investors on Wednesday.
The IPO of Hanoi-based Vinatex is widely seen as one of the more attractive in the communist country, where the government is reforming a largely inefficient state sector that accounts for about half of the country's debt.
Vinatex will conduct its IPO on the Hochiminh Stock Exchange on July 22, offering 24.4 percent of the company, or 122 million shares, at a starting price of 11,000 dong, or 52 cents at current exchange, each.
Another 24 percent would be sold to yet-to-be-determined strategic investors, 0.6 percent would be sold to employees and the state would retain 51 percent.
Garments and textiles are Vietnam's second-biggest cash earner after cell phones, netting $18 billion in 2013, with the figure projected to rise to $24 billion this year. Vinatex estimates about two thirds of that, however, is spent on importing materials, mainly from China.
The TPP has been under negotiation for five years and would make Vietnamese garments more competitive than those of China, currently the biggest textile exporter to the U.S. market.
Vinatex said it wants to raise registered capital to 5 trillion dong ($234.6 million) from 3.4 trillion dong ($159.8 million) to invest in yarn production, weaving and dyeing, and stitching — to reduce reliance on Chinese imports and qualify for the TPP's "yarn forward" requirement concerning locally made materials.
The company projects a 28 percent increase in net profit this year to 300 billion dong ($14.1 million) from 234 billion dong (about $11 million) in 2013. It said its profit margin could fall due to rising domestic competition as local firms boost production ahead of the TPP signing.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast