Lilama Corporation, a state-owned contractor for many large power plants in Vietnam, ended its initial public offering on Thursday in a negative note, raising only 1.5 percent of its funding target, local media reported.
The auction-style IPO attracted 112 individual investors who bought a total of 1.09 million shares at an average price of VND10,362 each, the Hanoi Stock Exchange was quoted as saying on Friday. It raised VND11.3 billion.
Lilama planned to raise around VND740 billion ($32.6 million) through the sales of 35.5 million shares, equivalent to 23.7 percent of its charter capital.
The company also planned to sell another 23.7 percent stake to a maximum of three strategic investors and another 1.6 percent to its employees.
It is still unclear if the Ministry of Construction, which currently manages Lilama and expected to own a controlling stake of 51 percent after the privatization, will revise its plan following the unsuccessful IPO.
Lilama, which has invested in 22 companies, is the oldest and leading contractor in Vietnam, responsible for power plants around the country such as Uong Bi thermal plant in the northern province of Quang Ninh, and Vung Ang thermal plant in the central province of Ha Tinh.
Its return on equity ratio fell to 4.74 percent last year from 10.2 percent in 2012, while its return on assets declined to 0.52 percent from 0.69 percent.