Vinacafé the next mega-IPO in Vietnam

Vinacafé the next mega-IPO in VietnamVietnam National Coffee Corporation, the nation’s largest state-owned coffee producer known for its Vinacafé brand, is planning an initial public offering (IPO) next year as the government reduces its stake in the company.

The IPO of the group will include the Vinacafé unit and 18 other branches. The government also plans to reduce its stake in seven other subsidiaries by 35 per cent in separate IPOs at an undetermined time. The process valuing the company is expected to start in July, and the actual listing could happen in the first quarter of 2018.

Vinacafe is the successor company of Coronel Coffee Plant which was established in 1969 by French engineer Marcel Coronel with the aim of providing inexpensive coffee for export to France. When Coronel left Vietnam in 1975 after the Vietnam War came to an end, the Vietcong nationalised and took over management of the the plant.

In 1978, the company began exporting coffee to the Soviet Union and other Soviet bloc states. The Vinacafé brand was established in 1983 when sales returned to the domestic market and new export markets were explored.

In 1995, the Vietnam National Coffee Corporation was created by government decree, grouping together a large number of smaller corporations, including other coffee plantations and processing plants. Today, Hanoi-based Vietnam National Coffee Corporation is involved in much more than just coffee production and ales, namely food and industrial crops, seafood, spare parts, machines and consumer goods. In addition, it offers technical science, training, construction, transportation, tourist, hotel, medical care and investment consultant services.

Vinacafe, which has a share of the domestic instant coffee market of 50 per cent, edging out Nestlé’s share of 33 per cent. forecasts revenue this year of between $175 million and $197 million. It expects to export between 80,000 and 100,000 tonnes of beans from next year, up from 50,000 tons in 2017 and 22,000 tonnes in 2016.

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 domestic statistics.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

Vietnam National Coffee Corporation, the nation’s largest state-owned coffee producer known for its Vinacafé brand, is planning an initial public offering (IPO) next year as the government reduces its stake in the company. The IPO of the group will include the Vinacafé unit and 18 other branches. The government also plans to reduce its stake in seven other subsidiaries by 35 per cent in separate IPOs at an undetermined time. The process valuing the company is expected to start in July, and the actual listing could happen in the first quarter of 2018. Vinacafe is the successor company of Coronel...

Vinacafé the next mega-IPO in VietnamVietnam National Coffee Corporation, the nation’s largest state-owned coffee producer known for its Vinacafé brand, is planning an initial public offering (IPO) next year as the government reduces its stake in the company.

The IPO of the group will include the Vinacafé unit and 18 other branches. The government also plans to reduce its stake in seven other subsidiaries by 35 per cent in separate IPOs at an undetermined time. The process valuing the company is expected to start in July, and the actual listing could happen in the first quarter of 2018.

Vinacafe is the successor company of Coronel Coffee Plant which was established in 1969 by French engineer Marcel Coronel with the aim of providing inexpensive coffee for export to France. When Coronel left Vietnam in 1975 after the Vietnam War came to an end, the Vietcong nationalised and took over management of the the plant.

In 1978, the company began exporting coffee to the Soviet Union and other Soviet bloc states. The Vinacafé brand was established in 1983 when sales returned to the domestic market and new export markets were explored.

In 1995, the Vietnam National Coffee Corporation was created by government decree, grouping together a large number of smaller corporations, including other coffee plantations and processing plants. Today, Hanoi-based Vietnam National Coffee Corporation is involved in much more than just coffee production and ales, namely food and industrial crops, seafood, spare parts, machines and consumer goods. In addition, it offers technical science, training, construction, transportation, tourist, hotel, medical care and investment consultant services.

Vinacafe, which has a share of the domestic instant coffee market of 50 per cent, edging out Nestlé’s share of 33 per cent. forecasts revenue this year of between $175 million and $197 million. It expects to export between 80,000 and 100,000 tonnes of beans from next year, up from 50,000 tons in 2017 and 22,000 tonnes in 2016.

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 domestic statistics.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply