Photo: Quynh Nguyen
Target announced at group’s roadshow in Hanoi on March 31 introducing investment opportunities.
The KIDO Frozen Food JSC (KDF) under the KIDO Group Corporation (KDC) targets holding a 50 per cent share of the ice cream market in Vietnam by 2020, General Director Tran Quoc Nguyen said at the group’s roadshow in Hanoi on March 31 introducing investment opportunities.
After its April IPO, he went on, it will focus on expanding distribution channels for frozen food, with a goal of 150,000 points of sale by 2020. “KDF currently has more than 70,000 points of sale in the country and we plan to increase this by 10,000 to 20,000 each year,” he said and added that the company targets 2017 revenue to total VND1.8 trillion ($79.2 million).
While valued at VND65,000 ($2.8) per share, KDF decided the starting price at its IPO would be VND52,000 ($2.3). Mr. Nguyen said the goal of KDF is to create as many opportunities for investors and potential partners as possible. “Based on our leading position in the frozen food market, we believe in creating value for our shareholders,” he said.
Post-IPO, KDF plans to conduct merger and acquisitions (M&As) with dairy and frozen food companies that have good nationwide distribution systems. It will trade on the UPCoM market and will soon list on the Ho Chi Minh City Stock Exchange (HoSE), but gave no further details about when.
KDC announced the sale of 35 per cent of its frozen food subsidiary earlier this month. The group's Deputy Chairman and CEO Tran Le Nguyen told a conference introducing investment opportunities in KDF that 11.2 million shares, or 20 per cent, will be offered in April at a starting price of VND52,000 ($2.3) per share. The remaining 15 per cent will then be offered to partners and employees.
Individual investors and domestic and foreign investors are permitted to purchase the shares. The number available to individuals is a minimum of 3,000 shares and a maximum of 100,000, while for organizations it is 10,000 and 500,000, respectively. Registrations are being taken from March 31 to April 12.
The frozen food business brought it substantial profits last year. According to a report from the Ho Chi Minh Securities Corporation (HSC), net revenue in 2016 reached VND1.4 trillion ($61.6 million), up 34.8 per cent against 2015. After-tax profit was VND143 billion ($6.3 million), up 85 per cent and accounting for 63 per cent of KDC’s profit.
KDF now owns a frozen food distribution network with over 70,000 points of sale throughout the country. KDC's net revenue stood at VND2.2 trillion ($96.8 million) last year, down 28.7 per cent against 2015. Gross profit was VND880 billion ($38.72 million), thanks to consolidating the profits of the Tuong An Vegetable Oil Company (TAC).