Telecom operator Việt Nam Posts and Telecommunications Group (VNPT) expects to hold its initial public offering (IPO) in 2019, according to the group’s chairman Trần Mạnh Hùng.

“There is still a lot of work to be done for the group’s IPO, such as selecting advisors, valuating the firm and seeking a strategic partner,” Hùng told Đầutư (Investment) newspaper.

“The selection of advisors alone is a complicated process, as each component of the IPO plan will require a specific advisor to work on it. The VNPT will look for cooperation from foreign, reputable IPO advisors.”

He added that “the company will try to finalise its IPO portfolio and complete all the required procedures in 2018, then do the IPO in 2019”, as there were still problems with the firm’s IPO plan that required the Government to make the final decisions.

The preparation of the IPO will be carried out after the restructuring plan, which has been submitted to the Ministry of Information (MIC) and Communications and the Prime Minister, is approved, he said.

To complete the restructuring plan, the VNPT has founded a board, which specialises in the firm’s equitisation process, and asked its member companies to compile corporate reports.

The VNPT has completely restructured its three corporations, which are telecommunication services provider VNPT VinaPhone, network operator VNPT Net and value-added services provider VNPT Media.

New corporation

The VNPT has also proposed that the MIC establish a new corporation that would focus on technology development and produce both software and hardware components. The establishment of the fourth corporation under the management of VNPT has got the green light from the MIC.

After two years of restructuring, the information-technology sector of VNPT says it has made rapid and strong development in different fields.

The business unit has been able to develop and provide software applications for the Government, its agencies and ministries; smart city applications for provinces and cities; and products for other sectors, such as healthcare and education.

As part of the restructuring plan, the VNPT also wanted to hold 20 per cent in MobiFone to make up for the reduction of its charter capital when the latter split away in August 2014.

Two years later, the VNPT proposed that the Government allow it to spend parts of the income from the equitisation of MobiFone on the firm’s business activities.

Responding to the company’s request, the Prime Minister has assigned the MIC to develop the equitisation plan for MobiFone and submit that plan to the Government for review.