According to an announcement from the Hanoi Stock Exchange (HNX) on Thursday, Hanel Company Limited, the major investor in the complex with a 71 percent stake, plans to sell 19.1 million shares at an opening price of VND10,000 ($0.45) on April 14. The IPO is expected to attract a number of large investors.
The Daewoo Hotel complex. Photo: VnExpress
Following a divestment scheme approved by Vietnam’s Deputy Prime Minister Vu Van Ninh, Hanel will sell 117 million shares, or 61 percent of equity, in total to strategic investors for a minimum of VND1.17 trillion (over $52 million). State ownership will remain at 29 percent.
Hanel was established in 1984, and its charter capital is expected to rise to VND 1.92 trillion (over $86 million) following the listing.
The most attractive part of this deal is the famous 5-star complex located in Hanoi downtown that includes a hotel with more than 400 rooms, and hundreds of residential apartments and offices.
Daewoo Hotel was established in 1996 and has received many well-known figures such as former U.S. President Bill Clinton, Russian President Vladimir Putin and former Chinese President Hu Jintao.
Hanel also owns a 6,000 square meter office and residential complex in Hoang Mai district in Hanoi, and the Vietnamobile mobile network.
Currently, Hanel has 32 affiliates, alliances and joint venture companies operating mainly in electronics, communications, real estate, telecoms, investment and IT.