(Construction) – On July 20, Construction Corporation No. 1 (CC1) held an initial public offering (IPO) auction with over 14 million shares with par value of 10,000 VND/share. starting price is 10,300 VND/share. After the auction, 100% shares were successfully traded.

First successful IPO

 CC1 is a State-owned enterprise under the Ministry of Construction, operating mainly in 3 fields of construction and installation (contributing over 60% of revenue) industrial, civil, transport infrastructure and energy; investing in many large projects in the fields of energy, civil and transportation in the form of PPP, BOT; manufacturing and supplying industrial products, building materials and electricity. CC1 is headquartered in Ho Chi Minh City and its subsidiaries include Northern Branch, Central Branch, and Mekong Company (HCMC); In addition, it also owns 5 subsidiaries with a total contributed capital of 350 billion VND, 14 joint venture companies with an ownership rate of less than 50%. CC1's financial position and revenue are always so stable thanks to the fact that CC1's investment areas are now profitable.
Over the past time, CC1 has completed major national projects and left its name behind such as: Sao Mai Cement Factory, Phu Tho Sports Stadium, Nhon Trach 1 Thermal Power Plant. , Diamond Plaza... Currently, CC1 is the investor of large projects such as Dakrtih Hydropower Plant with a capacity of 144MW in Dak Nong Province (the first energy project and has been promoted by CC1 since five years). 2006), 43ha Happy Residential Area project, Dong Nai bridge BOT project. With its ability, CC1 has asserted itself in the market, so CC1's share auction has attracted 73 investors to register to buy nearly 69,000 million shares, nearly 5 times the number of shares. offer for sale. At the auction, the highest successful bid was 15,600 VND/share, the lowest successful bid was 14,200 VND/share. Unexpected success, CC1 has collected a total value of more than 200 billion. According to experts from the Southern Institute of Construction Economics, the reason why CC1's financial situation and revenue are always so stable is because CC1's investment fields now have stable profits. That is the revenue from Sailing Tower rental building in District 1, Ho Chi Minh City, Dakrtih Hydropower Plant, Dong Nai Bridge BOT Toll Station. 

Raising capital through the stock exchange

 According to economic expert Nguyen Tri Hieu, it is always necessary for businesses to go public. Because listing on the floor will support businesses that can mobilize capital from investors. To be listed on the floor, the enterprise must be transparent about its finances and operate profitably, which not only supports the mobilization of capital from businesses but also supports the public and all investors. “However, at this time, it is not very convenient for businesses to go public, because the current capital market is still tight, so not all companies that go public are successful to raise capital. Except for enterprises that have been in the market for a long time, have transparent financial statements, are profitable and have a good reputation in the market, it is easy to raise capital, but it is very difficult for new businesses. New businesses that want to raise capital from the stock market must have independently audited financial statements and show that in the past 3 years have been profitable, have development directions as well as the market, "Mr. Hieu added. . According to CC1's operation report, in 2015, the total production and business value reached VND 10,707 billion, exceeding 10% compared to the year plan and increasing 11% over the same period last year. The first 6 months of 2016 also reached over 51% as planned. The investment and development activities of CC1 in 2015 also reached VND 1,629 billion, exceeding 31% compared to the plan in 2015 and increasing by 45% compared to 2014. Investment and development activities mainly focused on the projects of the parent company. such as the new Dong Nai bridge BOT project and the two-way bridge, the BT project on Ho Chi Minh road section La Son - Tuy Loan, the Hanh Phuc residential area project and investment projects to improve production equipment capacity and construction. According to the assessment of the Southern Institute of Construction Economics, CC1's equity is currently lower than the actual value invested outside because TCty does not have enough available capital. TCty's business capital is mainly based on borrowed capital. Capital investment activities include reducing the capital contribution ratio from 51% to 36%; complete divestment in Construction Joint Stock Company No. 5; increase equity in parent company and restructure debt. Currently, CC1 is strongly implementing the enterprise restructuring project proposed by the Ministry of Construction within the framework of the program "Reform of State-owned enterprises and support for corporate governance". Accordingly, in the period 2016 - 2020 CC1 aims to grow the total value to 290% with the rate of return on equity per year increasing from 11 - 14%. After equitization, CC1 has a charter capital of 1,100 billion VND. The capital structure in turn is the State holding 40%; strategic investors hold 45%; employees buy incentives 2.1% and sell IPO 12,81%. Established in 1979, CC1 has continuously grown and grown in all aspects, from construction contractors to investors in energy projects, transport infrastructure, real estate, building materials...
High intensity