Saigon Thuong Tin Real Estate Joint- Stock Co., a unit of the fourth-biggest bank on Vietnam's main stock market, plans to list 100 million shares on the Hanoi Stock Exchange next month, the unit's chairman said.
The shares will start trading on Nov. 9, Dang Hong Anh said in a telephone interview Thursday.
Vietnam's stock market debuts, 75 percent of which rose in the first eight months of the year, have all dropped bar one since September, amid concerns that high interest rates will crimp lending and the currency will fall further. The benchmark VN Index dropped 6.9 percent this year and closed at 458.66 today.
Sacomreal, as the Ho Chi Minh City-based property developer is known, plans to go ahead with the listing as "we still believe in our future because we target a 30 percent increase in profit a year from 2011 to 2015," company General Manager Thai Van Chuyen said Thursday.
Sacomreal, whose businesses include real-estate, property consulting and office rental, has since 2008 started construction on projects including Sacomreal Hoa Binh Residential Building, Office Building General Limex and Tan Thanh Urban Area in Ho Chi Minh City, it said in a statement on its website.
The company had a pretax profit of VND668 billion ($33.4 million) in the first nine months of the year, exceeding the target of VND650 billion for the whole of 2010, Chuyen said.
Demand for office space in Ho Chi Minh City continues to grow, though rents are expected to come down, especially in buildings with lower occupancy, according to the third-quarter report from CB Richard Ellis Group Inc.
The unit of Saigon Thuong Tin Commercial Joint-Stock Bank is trading from 30,000 dong to 40,000 dong per share in the so- called over-the-counter market, Chuyen said. Companies don't have to set initial prices for the first trading day on the country's second-biggest bourse.