Steel giant Pomina makes IPO in HCM City

Pomina Steel Corporation made its initial public offer yesterday, April 20, on the HCM City Stock Exchange.

POM shares gained the maximum 20 per cent on their opening day, closing at VND48,000 per share, but on a miniscule volume of 23,510 shares, worth just VND1.13 billion (US$59,473).

Founded in 2008, steel producer Pomina has charter capital of VND1.63 trillion ($85.8 million). Viet Steel Co Ltd is the leading shareholder, holding a 60.2 per cent interest.

Pomina owns a pig iron processing plant with a capacity of 500,000 tonnes per year, and two steel plants, each producing 1.1 million tonnes per year, including 600,000 tonnes of construction steel.

This gives Pomina a 14.3-per-cent market share, a figure that rises to 33.5 per cent in the southern region.

Saigon Securities Inc steel industry analyst To Thuy Linh said that the business growth of Pomina would be even more impressive once the steel industry’s prospects improved.

Linh pointed to the Viet Nam Steel Association’s prediction that domestic demand for steel would increase by 10-12 per cent annually.

Kim Eng Viet Nam Securities Co analysts said the company’s major market, the southern region, maintained a stable steel consumption of 1.8-2 million tonnes per year. They also noted that POM shares had a return-on-equity rate of 40.2 per cent and a price-to-earnings ration of 12.8.

Pomina has projected earnings of VND10.11 trillion ($532.1 million) this year, up 34.2 per cent over last year, and has estimated a net profit of VND612 billion ($32.2 million) and a dividend of 20 per cent.

Viet Nam News

Tags: Pomina, Vietnam steel industry

Posted by VBN on Apr 21 2010. Filed under Steel, Stock. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry