Vinamotor, a major manufacturer of buses and trucks, has resumed its plan to sell a 97 percent stake owned by the state, following a lackluster IPO a year ago.
News website Saigon Times Online reported that under a plan approved by the Ministry of Transport, Vietnam Motor Industry Corporation, as the company is officially known, will auction a block of 85.58 million shares in a single trade. The starting price will be VND1.25 trillion (US$54.83 million), it said.
Foreign investors are allowed to buy the shares. All suitors must be in the same industry and have an equity of at least VND926 billion ($40.62 million) with no accumulated losses.
The shares are not allowed to be transferred within five years.
The Vietnamese government approved the transport ministry's plan to divest from Vinamotor in January.
However, the ministry has suspended the plan, waiting for the State Securities Commission of Vietnam to issue detailed regulations on selling state-owned shares in block trades.
The government has recently shifted to block sales of its stakes in state-owned enterprises, with an aim to attract investors who have capacities and commitment to restructure the companies.
Now that the regulations were issued last week, the transport ministry has resumed its plan, expecting to complete the sales by this December 31, the website reported.
Two of Vinamotor's subsidiaries are also set to sell all state-owned stakes, it said.
Vinamotor had the initial public offering in March last year and was expected to sell 51 percent state-owned stake, but the IPO ended up with only a 3.1 percent stake sold.
With 19 subsidiaries and 18 joint-ventures, Vinamotor now owns 60 percent share of the local bus and light truck market.
It posted a net profit of VND70.4 billion ($3.08 million) in 2014, a four-fold increase from the previous year. Its revenue is forecast to be VND871 billion ($38.21 million) this year.