Interested investors must register to buy the whole lot.

The initial price of each share (coded VOC) will be VND22,300 (US$0.96), which means SCIC could expect to receive a minimum of VND986 billion ($42.48 million).

This starting price is 34 per cent higher than VOC's opening price of VND16,600 yesterday on the UPCoM, Viet Nams exchange for unlisted public companies.

Viet Nam Vegetable Oils Industry Corporation (Vocarimex) was established in 1976. The corporation was equitised in 2011 and was transformed into a joint stock company in 2014 with initial charter capital of VND1.2 trillion. The company began trading on the UPCoM in 2016.

Since equitisation, Vocarimex has not increased its charter capital.

According to analysts, SCIC named the high starting price because Vocarimex currently holds major stakes in several leading cooking oil producers in Viet Nam as well as large plots of land in prime locations across the country.

For instance, Vocarimex has a 26.54 per cent stake in the Tuong An Vegetable Oil (TAC) and a 40 per cent stake in Golden Hope Nha Be (GHNB). As of the end of 2018, the two companies ranked second and third in terms of market share in Viet Nams cooking oil industry, accounting for 20 and 11 per cent respectively, according to market research firm Viet Analytics.

Viet Nams leading food company Kido Corporation is Vocarimexs biggest shareholder, having a 51 per cent stake (nearly 62.12 million shares). SCIC's 36.3 per cent stake (44.21 million shares) makes it the second largest shareholder.

According to Vocarimexs bi-annual business report, revenues fell to VND1.32 trillion in the first six months of the year, down 39 per cent year on year. Profit after taxes dropped to VND99 billion, down 28 per cent.

The auction of Vocarimex shares is one of 108 divestments planned by SCIC this year.

SCIC is a government agency set up to restructure state-owned enterprises to make them more efficient and to enable the state to consolidate capital in key sectors. — VNS